So I’m going to talk about a story in the Record that broke yesterday night, coinciding with the news of massive losses at Ibrox.
The club’s mid-year accounts showed a loss of £17.7 million through June of current year.
In a post last night, I noted that since their formation, the Ibrox club has lost nearly as much to HMRC as the old club did in 2012.
This is equal to fiscal insanity, and it has been allowed to continue unabated.
Year after year, since 2012.
When is enough?
Will UEFA have to do it for them?
They have no difficulty blasting Inverness Caledonian Thistle for owing a little couple of million.
But is it okay for the Ibrox side to lose hundreds of millions of pounds?
Perfectly acceptable.
The double standard is awful.
One club is allowed to trade while insolvent, but all other clubs in Scotland must follow the guidelines.
According to UK Liquidators, a company specialising in, you guessed it, liquidation, the Ibrox club is now technically operating while insolvent.
This is referred to as improper trading.
See the following information:
When a corporation goes insolvent, the directors must act in the best interests of the creditors by minimising their losses. If you continue to trade an insolvent firm after it is no longer viable and incur further debts, you may face a wrongful trading action.
Wrongful trading happens when an insolvent firm’s directors continue to trade despite knowing, or should have known, that the company has no realistic possibility of recovery. Directors may face personal liability if the firm continues to incur debts before filing insolvency or administration.
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