Ron and the Taxman before Tranmere Rovers

12 February 2010 11:23
Blues chairman Ron Martin has hit out at the Government and tax authorities after a winding-up challenge against the club was adjourned. Martin: 'All is not well in the House of Ron, part 2.Mr Martin told the Echo: "By any reasoned analysis, the action by Revenue and Customs is wrong. Simply because it represents a messed-up Government that is exerting pressure on companies, and football clubs in particular, in an effort to repair its own mistakes, does not make Customs either correct, justified or fair." "Customs is flaunting the rules to its own ends. We have and will continue to pay appropriate payments. This is a bona fide claim by the club and Customs are making mischief.""Just because it is the Government, that does not make it correct. Let's not forget it is in a financial mess with instructions to collect money, however possible, regardless of the consequences. Its action is a disgrace. Customer charter is a joke." In the High Court, Southend United were described as a "habitual defaulter" as they faced another winding up petition over an unpaid tax bill. The case was brought by Revenue and Customs over a £200,000 unpaid tax bill, but it was adjourned for four weeks by Registrar Christine Derrett. The club dispute the amount they owe and claim they overpaid when they settled an outstanding £2.1million in November. The club said two months' worth of debt for October and November last year had been paid but had been "misallocated" by the tax man. Matthew Smith, representing Customs, said: "This is a petition against a habitual defaulter. The company missed payments for months seven and eight of the present tax year. The company will claim previous payments have been misallocated, and were not VAT, but PAYE debts. But it makes no difference. Essentially, this argument is designed to circumvent a ruling from the Football League that clubs in VAT debt can't take part in transfers, but they can if the debt is PAYE." PAYE is the tax paid on the money a company pays to its employees. Both PAYE and VAT are looked after by Revenue and Customs. A solicitor representing the club, who refused to give her name, said: "I don't accept the description of the company as a 'habitual defaulter'." The club must submit its evidence by March 3 prior to the hearing on March 10.

Source: FOOTYMAD