Taxman Gets Priority for 'Well Cash
By Firparkcorner
Updated Tuesday, 27th January 2004
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Another step in the long road back from administration was passed in the Court of Session when the opinion of Lord Carloway was delivered. It seems that the Inland Revenue is indeed a priority creditor.
At some stage after the club entered the state of interim administration (24 April 2002) there was a change in the law which related to the status of creditors. It was thought that the Revenue might have had the same standing
as other creditors and that they would have to accept the same percentage payout as other creditors.
Bryan Jackson asked the court if this was the case and the opinion makes it clear that debts in relation to PAYE and VAT have to be paid in full.
The outcome means that the amount of money available for former players and other creditors will be reduced. Presumably Bryan Jackson will now be able to complete his sums and be able to calculate the amount payable for each pound owed.
This seems neither a victory nor a defeat for the club but rather a clarification of a point of law. On the other hand it seems that the other creditors will be the losers. They will be presented with an offer and will probably have to accept it. (John Boyle remains the biggest creditor though he has stated that he will take nothing from the distribution).
The process of freeing the club from interim administration has been held up for a couple of months as the court considered the question. It is to be hoped that an offer can be put to the creditors soon and that the court can release its grip.
