HMRC brings in Portsmouth FC's administrators to challenge football creditor rule
Tue 19th Oct 2010 | Legal
HMRC has called on administrators from UHY Hacker Young to give their opinion on the controversial preferential creditor rule in court next year.
According to Accountancy Age, HMRC has "invited" the administrators of Portsmouth City FC to give their opinion on what "stance" they take on the football creditors rule.
The taxman faces a legal wrangle to overturn the football creditors rule which currently favours some creditors such as players, managers and others clubs should a club fall into administration
Any remaining money is then divided between the unsecured creditors, including HMRC.
However, it is unlikely UHY Hacker Young will appear in court according to sources.
The case which was brought about to challenge the rule, aims to ensure that tax revenues are paid by clubs in full in the event of administration after it was labeled ‘unlawful’ and believed to be outside the laws of insolvency.
The case will be heard next year.
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