I had written a wholly different blog that I was about to post yesterday but due to what has happened to Rangers (In Administration) – to give them their proper title, it will need to be put on the back burner for a more appropriate point…..
The last two days has seen the Rangers (in Administration) End Game Story take on a whole new life of its own and has a plot which is faster moving, more intricate and more bizarre than an episode of Twin Peaks – watched backwards.
When I predicted in the #guessthedaterangersdie that it would be 14th February 2012 I thought I was being optimistic but felt it would have a nice romantic ring to it. The real tipping point for me came when they exited to Dundee United in the Scottish Cup, It was their last pay day, there would be no more income coming into the club until 9,000 celtic fans turned up in late march. With all companies considering administration the optimum point is just after your last income stream and before you need to pay out to creditors or large monthly salaries. Unfortunately for Dundee United, Dunfermline and a list of others who will be revealed over the coming weeks, this was the optimum point. The posturing and ramifications of this will continue for the next week but as I stated in a previous blog, they will be unable to trade their way out of this position and liquidation is a racing certainty – remember the EBT case hasn’t even been declared yet. I am still struggling to calculate what income the Administrator will have to keep the place open on a week to week basis and surely reneging on Season Tickets and asking fans to pay at the gate again is a real possibility.
The Crying Game
As the details are revealed over the coming days and weeks the case being put forward by the SFA / SPL / Media / Rangers (In Administration) supporters that they should be allowed to remain in the SPl will start to unravel as it will become harder to justify in the face of the damming evidence. As we have learned, Craig Whyte has continued the long held Rangers (In Administration) tradition of not paying tax; whether it’s PAYE, VAT or otherwise, he has chosen to keep the club afloat using money that was not his to play about with. There was never an intention to pay this tax just as there was never the intention to pay Dundee United or Dunfermline or the club from Sweden
The number of supposed experts showing their complete ignorance of the circumstances who are taking to the airwaves nationally to talk about this situation is staggering. However the most abhorrent to my ears has been the abuse of position used by democratically elected members of parliament who have just and no more, stopped short of saying that Rangers (In Administration) should not be treated as any other tax evader.
Yesterday on national radio Central Ayrshire MP Brian Donohoe, (secretary of the Westminster Parliamentary Rangers (In Administration) Supporters Club), told the BBC: "It's absolutely devastating information that's come out today that the Inland Revenue would take such a silly decision.” I would have thought the devastating information that came to light was that a company had deducted PAYE at source from its employees and used the tax to then pay the employees the following month. With high earners on 50% tax rate Rangers (In Administration) were effectively getting two months of players for the price of one. In effect Allan McGregor for example, was paid his January wage using his December tax. But no instead Mr Donohue omitted this part of the story from the nation and went on an attack of the HMRC for having the audacity to expose this practice and stop it before it went any further.
Brian Donohue Margaret Curran
This morning Shadow Scottish Secretary Margaret Curran was on BBC Radio 5 Live putting forward the view that HMRC should act with leniency towards Rangers (In Administration) and confirmed that she had in fact written to the Treasury, urging it to act "in a reasonable way" with the club. There was no mention of Rangers (in Administration) having to act in a reasonable way or condemnation of the unreasonable, corporate policy of deliberate tax avoidance. As the Member of Parliament for Glasgow East Margaret Curran has a challenging constituency to look after with high levels of unemployment, poverty and health issues. It’s an interesting parallel to view the needs of that particular constituency against the clamour to protect of a company who have deliberated withheld the money from the public purse. How would the people of her constituency like to see £9 million being spent I wonder?
I mentioned in a previous blog the justified outcry of previous companies acting with blatant disregard for other peoples monies such as Farepak and the governance of Rangers (in Administration) should be receiving the same level of public condemnation from our elected members over the money that has been deliberately withheld from the public purse. Forget the individuals involved Murray or Whyte; it doesn’t matter if these characters disappear from view, Rangers (in Administration) as a company should be punished and there should be real public lobbying to have any tainted titles removed from them.
So how many MP's hold this view? Why not canvas your own MP on the subject? If you own a business this could be the boost your company needs to see you through these austere times. To assist you I have below drafted out a letter that can be copy and pasted.
Template Letter
Dear (Insert name of MP)
I am writing to ask for your assistance in a matter I am contemplating for the benefit of my company which I feel with give me the edge over my competitors.
Firstly a bit of background, I am a company with a turnover of circa £ (Insert amount) but unfortunately my costs are circa £ (insert larger amount) so as you can see I am currently trading out with my means.
I have been using an employee benefit scheme for the best part of 10 years which has allowed me to employ highly skilled people on salaries which I could never afford and this has brought untold gains to my company. Unfortunately the tax man has caught up with me and I have been hit with a bill for £ (Insert Amount).
I have come up with a plan to get me out of all this though, it involves not paying any PAYE tax or making any VAT bills for the foreseeable future. I will deduct the tax from my employees and receive VAT payments from customers but will not hand them over to the HMRC. This could save me £ (insert Amount) per year.
Here is where I need your help, could you please write to HMRC and ask them to go easy on me should they ever come calling for their money as I will have no means of paying any of it back. It would be great to receive your assistance as it would help sway the public’s opinion of this wrong doing in my favour and cast HMRC as acting unreasonably. This would buy me some time to slip out the country un-noticed.
Yours sincerely
(Insert Name)
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