{"id":10622,"date":"2016-12-21T14:18:14","date_gmt":"2016-12-21T14:18:14","guid":{"rendered":"http:\/\/etims.net\/?p=10622"},"modified":"2016-12-21T14:18:14","modified_gmt":"2016-12-21T14:18:14","slug":"resolution-12-the-full-story-part-two","status":"publish","type":"post","link":"https:\/\/etims.net\/?p=10622","title":{"rendered":"Resolution 12: The Full Story Part Two"},"content":{"rendered":"

At the end of the previous article, we noted that Rangers had been informed by HMRC that they had a liability. This would have made them ineligible for European competition.<\/p>\n

Those rules are quite clear, and even if the SFA were in any doubt about awarding a licence, then what they should have done if there was a doubt , was to consult UEFA for clarification.<\/p>\n

As we know, they did not. Perhaps they didn’t have the correct information from the club, or perhaps they decided to overlook it. Again, in the context of the period, Rangers were hurtling towards administration and eventual liquidation. They had another outstanding issue with their unique outlook on paying taxes, and there didn’t seem to be any way of finding the money to pay them.<\/p>\n

Unless they had that champions League cash. Cash they were not, as we have seen, entitled to.<\/p>\n

Already you can se that the SFA should answer the questions that are appearing. As you know, they didn’t then and they haven’t up until now.<\/p>\n

If the SFA were truly independent of any influence from the club, then they would have tried to make sure they were making the right decision, and they would then have absolved themselves of all blame for the impending crisis at Ibrox, one that would show the SFa were working for the benefit of the new owners of the former clubs assets. We’ll deal later with the five ways agreement, and the aborted attempt to shoehorn the new club into the Premier League and the Championship before they were forced to start at the bottom, although technically even that isn’t where they ended up.<\/p>\n

If they were ready to help New Rangers then, it follows they would have helped the old club as much as they could as well. Again, an issue they have refused to explain.<\/p>\n

In order to make the right decision regarding the issue of a licence, all they had to do was ask UEFA, and as this extract, taken from CAS papers detailing the case against Greek side Giannina, who had also applied for a licence in similar circumstances;<\/p>\n

 <\/p>\n

Substantive Issue Taken From CAS Papers.<\/span><\/em><\/strong><\/div>\n
<\/div>\n
74. The Panel notes that it is not disputed that, as of 31 March 2013, the Appellant o<\/span>w<\/span>e<\/span>d<\/span> EUR <\/span><\/span><\/em><\/div>\n
1,290,000 to the social\/tax authorities as a result from contractual and legal obligations towards<\/em><\/div>\n
employees that had arisen before 31 December 2012.<\/em><\/div>\n
<\/div>\n
75. Against this background, the Panel further notes that, according to Annex VII(2)(b) of the<\/em><\/div>\n
CL&FFP Regulations, payables are not considered as overdue, within the meaning of these<\/em><\/div>\n
regulations, if the licence applicant\/licensee (i.e. debtor club) is able to prove by 31 March that<\/em><\/div>\n
\u201cit has concluded an agreement which has been accepted in writing by the creditor to extend the <\/span><\/em><\/div>\n
deadline for payment beyond the applicable deadline\u201d.<\/span><\/em><\/div>\n
<\/div>\n
<\/div>\n
76. In the case at hand, the Panel finds that there was no written agreement as of 31 March 2013<\/em><\/div>\n
confirming that the Greek Tax Authorities had accepted to extend the deadline for payment<\/em><\/div>\n
beyond the applicable deadline.\u00a0<\/em><\/div>\n
<\/div>\n
77. In this regard, the Panel observes that, on 3 January 2013 and, again, on 26 March 2013, the<\/em><\/div>\n
Appellant submitted to the Greek Tax Authorities applications for the settlement. However, in the<\/em><\/div>\n
light of the applicable regulations,it<\/span>is<\/span>in<\/span>s<\/span>uf<\/span>f<\/span>icien<\/span>t<\/span>t<\/span>o<\/span>t<\/span>a<\/span>k<\/span>e <\/span>a<\/span>ct<\/span>i<\/span>o<\/span>ns<\/span>w<\/span>i<\/span>t<\/span>h <\/span>a<\/span>v<\/span>ie<\/span>w<\/span>o<\/span>f<\/span>o<\/span>bt<\/span>a<\/span>inin<\/span>g<\/span>a<\/span><\/span><\/em><\/div>\n
def<\/span>erra<\/span>l.<\/span> According to the Annex VII(2)(b) of the CL&FFP Regulations an agreement with the <\/span><\/em><\/div>\n
competent tax authority must be made in writing within the applicable deadline\u00a0<\/span><\/em><\/div>\n
<\/div>\n
78. In the case at hand, it is not disputed that the Appellant reached a written agreement with the Greek Tax Authorities to reschedule and pay its overdue payables in 48 instalments. However, such agreement was concluded on 29 May 2013, i.e. almost two months after the expiry of the applicable deadline.<\/em><\/div>\n
<\/div>\n
79. It results from the foregoing that, as of 31 March 2013, the Appellant had overdue\u00a0<\/span>payables towards social\/tax authorities as a result of contractual and legal obligations towards its employees that had arisen prior to 31 December 2012. The Panel therefore determines that the Appellant infringed Article 50 of the CL&FFP Regulations. \u00a0 \u00a0\u00a0<\/em><\/div>\n
<\/div>\n
<\/div>\n
<\/div>\n
There is no reason, as the cases are very similar, to expect that Rangers would have been treated any differently, and the outcome been any different, had UEFA or the CAS been given the case to make a decision on.\u00a0<\/em><\/div>\n
<\/div>\n
\n
The statements make UEFA\u2019s intent in Article 50 very clear, which is that overdue tax from a prior year not paid by 31st March \u00a0gives any club an unfair financial advantage of clubs with no such sums owing and so under FFP principles means a license should not be granted.<\/em><\/div>\n
<\/div>\n
\n
Based on the foregoing there is a very strong case that the Licence to play in UEFA competitions should not have been granted by the SFA but it was and it was retained during the monitoring checkpoints in June under Article 66 and September under Article 67 so how was this possible?<\/div>\n
<\/div>\n
In terms of the granting in view of the foregoing a more accurate statement from Grant Thornton on 30 March would have been;<\/div>\n
<\/div>\n
“All the recorded payroll taxes at 31 December 2010 have, according to the accounting records of the<\/em><\/div>\n
Club since that date been paid in full by 31 March 2011, with the exception of a \u00a32.8m liability <\/span><\/em><\/div>\n
arising from tax overdue from 2000\/01 to 2002\/03 accepted by Rangers which HMRC have<\/em><\/div>\n
agreed, after discussions, to postpone collection of until after Takeover. t<\/span>he<\/span>c<\/span>ont<\/span>i<\/span>nui<\/span>ng <\/span><\/em><\/div>\n
di<\/span>s<\/span>The \u00a0\u00a0<\/span>liability arises from……………o<\/span>f<\/span>\u00a3<\/span>2<\/span>.<\/span>8<\/span>\u00a0contributions between 1999 and 2003 into a discounted<\/em><\/div>\n
option scheme. These amounts have been provided for in full within the interim financial statements.\u00a0<\/em><\/div>\n
<\/div>\n
As opposed to the one submitted, as we saw in part one;<\/div>\n
\u201cAll the recorded payroll taxes at 31 December 2010 have, according to the accounting records of the Club since that date been paid in full by 31 March 2011, with the exception of the continuing discussion between the Club and HM Revenue and Customs in relation to a potential liability of \u00a32.8m associated with contributions between 1999 and 2003 into a discounted option scheme. These\u00a0<\/em>
amounts have been provided for in full within the interim financial statements.\u201d \u00a0<\/em><\/div>\n
<\/div>\n
<\/div>\n
We’ve left out the bit that says ” the continuing \u00a0discussions between the club and HM Revenue and Customs in relation to a potential liability. ” Largely because it wasn’t a potential liability, but an actual one, as we have seen.<\/div>\n
<\/div>\n
\n
Had this more accurate statement of events been presented to the Licensing Committee on 30th March 2011 could they have granted the licence or would they have to have sought advice from UEFA ?<\/div>\n
<\/div>\n
Or, like the Greek FA refused the application but put forward to UEFA to consider after Giannina FC appealed?<\/div>\n
<\/div>\n
As Celtic shareholders is there a case here that Grant Thornton provided Rangers FC with a free pass to UEFA money or were they acting on information provided by Rangers FC?<\/em><\/div>\n
Either way the truth regarding the liability was not stated and that allowed a licence to be granted to Rangers FC that may not have been had a more accurate statement been provided. This would have impacted on Celtic share value had they as SPL Runners Up taken the place of Rangers FC.<\/em><\/div>\n
<\/div>\n
In short is there a criminal case of misrepresentation to aid and abet financial gain against Grant Thornton and against Rangers FC of misrepresentation for financial gain?<\/strong><\/div>\n
This does not necessarily mean pursuing a settlement, particularly as one party is in liquidation, but it has to be made clear somehow that such behaviour by a football club and auditors is totally unacceptable in the modern business of football.\u00a0<\/strong><\/div>\n
<\/div>\n
Football is a sport. a sport which demands a level playing field, literally and practically.\u00a0<\/strong><\/div>\n
Have we seen a tilting of the table in favour of one particular participant ? Are we setting the standard for the future of the game by ignoring this issue?\u00a0<\/strong><\/div>\n
<\/div>\n
For the good of the Scottish game, its international image, and more importantly , for guys and girls like me and you who have emotional and financial investment in football this needs to be brought out into the open and dealt with independently of the SFA.\u00a0<\/strong><\/div>\n
<\/div>\n
Questions must be asked , in the Scottish Parliament if necessary, not because of the money lost or gained, but simply because we have a right to know if when we watch the football, no one is exempt from the rules.\u00a0<\/strong><\/div>\n
<\/div>\n
We need to know they are being applied without fear or favour, because anything other than that, and its not a game any more.\u00a0<\/strong><\/div>\n
<\/div>\n
Still, if thats what we want, we could always watch the wrestling.\u00a0<\/strong><\/div>\n
<\/div>\n
. In Part Three, yes, there’s more, much more, we’ll look deeper into what the SFA have said so far about the case, and you’ll be able to conclude for yourself whether or not there are questions to be answered, and why this issue cannot be ignored any longer.<\/div>\n
<\/div>\n
If only so that we can keep whats left of the Corinthian spirit in football.<\/div>\n
<\/div>\n
<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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