Pompey Issued With Winding-up Petition
HM Revenue and Customs has issued struggling Championship club, Portsmouth FC, with a winding-up petition over unpaid tax, after failing to meet two payments totalling £1.6m.
The club became the first Premier League club to enter administration in 2010 and were consequently deducted nine points on their way to relegation from the top flight.
A HM Revenue & Customs (HMRC) spokesman said: ‘Ensuring tax is paid on time should be at the centre of a football club’s business strategy just as it should be for any other enterprise.’
‘Any business that regards paying tax as an optional extra after other expenses are met, or that uses tax collected from employees or customers as working capital, is potentially heading for trouble.’
‘It is only fair to those clubs and to other taxpayers who do meet their obligations that HMRC enforces payment of tax debts owed – and if need be, issues a winding up petition or seeks to appoint an administrator.’
‘There is little HMRC can do for a business – be it a football club or not – whose viability is dependent either on not paying the UK taxes to which they are liable, or on special treatment not available to other customers with similar tax affairs.’
There is now an increased urgency to find new backers for the club, after Italian businessman Joseph Cala pulled out of a deal to buy Pompey on Friday – leaving the club in desperate search of investment in order to meet ongoing running costs.
Portsmouth currently sit in 17th in the Championship table, seven points clear of the relegation zone.
Meanwhile, Harry Redknapp and Milan Mandaric, former manager and chairman of the club respectively, have been appearing in court this week over alleged secret payments during their time at the South Coast club.
Jurors heard that Redknapp did not tell his accountant or bank about an offshore account for years, and is accused of receiving secret payments from the ex-chairman while he was manager at Portsmouth.
Mr Mandaric, 73, and Mr Redknapp, 64, deny charges of cheating the public revenue.
