Question for the Tax savvy accountants

[spanish flair]

When Crystal Palace (or any other company) announced large profits less than 5 years from coming out of administration, why can't t the HRMC claim the back taxes owed when they entered administration? I was under the impression the government could claim back taxes from up to 6-10 years after they had not been paid.
I do realise that a CVA was agreed with creditors, but unlike all the other creditors the HRMC voted against acceptance. So what is to stop them now claiming the money owed, when they are now in a financial position to pay the £2.75 million owed?

 

[nwgull]

The existing Crystal Palace owning company - I believe they're called CPFC2010 Ltd. - we're formed, as the name suggests, in 2010. They have nothing to do with the previous Crystal Palace owning company that went into admin as far as companies house is concerned.

 

[tinycowboy]

As NWGull says, it's a different company, without the liabilities of the other one and therefore no obligation to pay someone else's debts. A llimited company is exactly that - if it can't pay its liabilities, then that's that and it will fold still owing people money, which they will never get. There's no obligation on the shareholders of that company to personally pay anything, unless they have made guarantees to do so, so, even if the owners of the two companies were the same (which, in this case, they're not), there would be no comeback to them, which is why you annoyingly see people going out of business, owing people money and then straight away forming another company (unless they're banned from being a director).

 

[spanish flair]

Thanks guy's, I understand now.

Begs the question why does the Football League let a brand new club straight into the Championship.

 

[Thunder Bolt]

Thanks guy's, I understand now.

Begs the question why does the Football League let a brand new club straight into the Championship.

It's so that Palace fans can come on here and boast how they haven't been out of the top two divisions for over 30 years.

 

[spanish flair]

It's so that Palace fans can come on here and boast how they haven't been out of the top two divisions for over 30 years.

Not any more it is only 5 years now, that other club are defunct.

 

[Thunder Bolt]

Not any more it is only 5 years now, that other club are defunct.

I know that, you know that, but Palace fans delude themselves. Cheats do prosper (for now).

 

[Tim Over Whelmed]

The existing Crystal Palace owning company - I believe they're called CPFC2010 Ltd. - we're formed, as the name suggests, in 2010. They have nothing to do with the previous Crystal Palace owning company that went into admin as far as companies house is concerned.

and it's this "law" or "rule" that will see more acceptance of football franchising in this country. How many football clubs today are the same legal identity they were twenty years ago, not many I'd suggest?

 

[scousefan]

Wouldn't it be interesting to see a timeline of how and when the clubs in the top two divisions have changed company.

 

[cloud]

I thought you weren't allowed to set up a new company for a certain number of years after having gone bankrupt

 

[nwgull]

I thought you weren't allowed to set up a new company for a certain number of years after having gone bankrupt

It was the previous club that went bankrupt, not the individuals owning it. Besides, I don't think any of the owners of CPFC2010 had anything to do with the previous bunch, did they?

 

[dejavuatbtn]

Yep, all the little companies going skint on the back of a football club's company going into administration. It's just amazing how football generates so much money but this still happens. Should be a rule, if the club go skint, then they're out of the league. On fact of a club cannot operate without gebrating more debt then they, too, should be lobbed out. It might just focus the attention and get away from the shambles that professional football has become.

 

[surlyseagull]

Pompey Tw*ts ................oops different thread same result .