HMRC is taking the Premier League to court in another attack by against the
controversial football creditors rule.
Currently, if a club enters administration they are bound by the football
creditors rule, meaning some creditors such as players and managers will be paid
in full from the administration and the remaining payments divided between the
unsecured creditors including HMRC.
The tax office said that due to the duty of confidentiality it could not comment
on individual cases, but made no secret of its disdain for the football
creditors rule, claiming it to be unlawful.
A spokesman stated: "HMRC‘s view is that there is nothing in insolvency
legislation that provides for unsecured debts due to “football creditors” to be
paid in preference to other unsecured creditors such as HMRC.
"Our view is that the practical application of the so called 'Football Creditors
Rule' may be unlawful.
"We have nothing further to add at this stage."
The Premier League declined to comment on the details of the legal case.