11-02-2010, 06:40 PM
It gets worse....
The scale of their financial troubles was revealed in proceedings that were embarrassing to the club and damaging to the reputation of the Premier League.
The tax authorities claim to be owed £12.1million, comprising £7.4million of VAT, and £4.7million in unpaid PAYE and National Insurance that is not part of HMRC’s initial petition to the court.
Portsmouth’s total debts run to an estimated £60million, with £28million owed to former owner Sacha Gaydamak, who has not joined the court petition.
Portsmouth contest the VAT debt and in a separate court action are appealing to challenge their requirement to pay VAT on transfer fees. They also claim to have sufficient funds in outstanding Premier League broadcast revenue and cash to settle the PAYE debt.
HMRC’s determination to recover what they claim to be owed was clear, as was their intention to send a message to the football industry that they are no longer willing to allow clubs to run up large tax arrears without consequence.
Gregory Mitchell, QC for HMRC, told the court: “It is quite clear and not in doubt at all that this company is insolvent and they have failed to provide any evidence as to their solvency. There are many, many debts that they continue to accrue, and it is quite clear that they are trading while insolvent.”
Source: telegraph.co.uk
The scale of their financial troubles was revealed in proceedings that were embarrassing to the club and damaging to the reputation of the Premier League.
The tax authorities claim to be owed £12.1million, comprising £7.4million of VAT, and £4.7million in unpaid PAYE and National Insurance that is not part of HMRC’s initial petition to the court.
Portsmouth’s total debts run to an estimated £60million, with £28million owed to former owner Sacha Gaydamak, who has not joined the court petition.
Portsmouth contest the VAT debt and in a separate court action are appealing to challenge their requirement to pay VAT on transfer fees. They also claim to have sufficient funds in outstanding Premier League broadcast revenue and cash to settle the PAYE debt.
HMRC’s determination to recover what they claim to be owed was clear, as was their intention to send a message to the football industry that they are no longer willing to allow clubs to run up large tax arrears without consequence.
Gregory Mitchell, QC for HMRC, told the court: “It is quite clear and not in doubt at all that this company is insolvent and they have failed to provide any evidence as to their solvency. There are many, many debts that they continue to accrue, and it is quite clear that they are trading while insolvent.”
Source: telegraph.co.uk