Source: Telegraph
Portsmouth set to discover tax verdict
The club's appeal against the winding-up order was heard in camera at the High Court on Monday, with a decision expected on Tuesday morning. HMRC say that the club owe more than £11 million in unpaid tax, but the new owners claim to have paid off £4 million and dispute the total claimed by the Inland Revenue.[LNB]On Monday they argued that they needed more time to discuss their liabilities with HMRC and urged the judge to quash the winding-up petition.[LNB] Related ArticlesPortsmouth transfer ban still standsPortsmouth to take action over EPL sanctionsPortsmouth v Birmingham offJames's move to Stoke collapsesBusiness of football to be revealedSport on televisionIf the club are successful, it will give the new owners time to address the financial issues at the club. If the judge rules in favour of HMRC the case will be heard on Feb 10, with Portsmouth in real danger of becoming the first Premier League club to be forced into administration.[LNB]Portsmouth are also in dispute with the Premier League, which has imposed a transfer embargo because of unpaid debts to creditors. Last week the League distributed £5 million of a £7 million tranche of broadcast revenue to creditors including Chelsea and Tottenham, but held back the balance.[LNB]The League has said this is as security against future defaults by Portsmouth but this goes beyond the remit of league regulations.[LNB]Executive director Mark Jacob wrote to the League last week pressing for the money to be handed over and the embargo to be lifted by Tuesday. He is understood to have suggested that the matter be settled by arbitration if the League does not hand over the money.[LNB]The breakdown in relations with Gloucester Place is the latest stage in a calamitous season at Fratton Park which has seen the players paid late three times in four months, twice since the new regime of Ali Al-Faraj took over in October. [LNB]
