Dundee face administration threat over tax bill

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Dundee face a £250,000 bill from the taxman that could force them into administration, according to a spokesman for the football club.

A senior Dens Park source told BBC Scotland: "HMRC are looking for the payment immediately.

"And they are being completely inflexible, with no room for negotiation at all."

Dundee had already been plunged into crisis after major investor Calum Melville tendered his resignation.

The Aberdeen-based businessman had offered to resign from the Dundee board as he tackles personal business problems.

That led to negotiations between the club and the director, leading Melville to say he would remain on the board if still wanted and that he would continue to back the club financially.

Dundee director Calum Melville

But Melville told the News of the World: "I feel we are being treated differently from other clubs and I would have thought HMRC has a duty to treat everyone in the same fashion.

"The words used were that they 'wanted to bring Dundee to account and bring the rest of Scottish football to heel'.

"Dundee FC are in a hole with HMRC. We've been running in arrears with them for 19 months and they are now demanding full payment for the outstanding amount, which is something around £250,000.

"We have offered £100,000, which has been rejected. I have also offered to pay the full amount in May next year and that has also been rejected.

"There is no question that the club is being used as an example and it has put us in a really difficult place.

"My feeling is that HMRC will write to us in the next week and tell us what their intentions are. There is a very distinct possibility of administration."

Meanwhile, Dundee's problems on the field of play deepened on Saturday with a 2-1 defeat away to Cowdenbeath.

Gordon Chisholm's side sit seventh in Division One, 10 points behind leaders Dunfermline Athletic.

you'd have thought they'd have learned the 1st time, but apparently not. :mad:
 
melville should put the money in himself and then come january sell grifitths and harkins get no bad money for them then just break even and stop running the club as if we are an spl club and start acting as a sfl team if not we are goin to end up in a lot more debt ill still be there week in week out supporting the team but the football has been terrible all season and could find ourselves in a relegation battle never mind promotion
 
To be fair, you can't negotiate taxes. I really do hope they survive though!
 
Just to carry on from this http://news.bbc.co.uk/sport1/hi/football/teams/d/dundee/9044022.stm

Dundee FC fail to pay player and staff wages


_49293551_dens.jpg

Dundee are facing a £350,000 tax bill to avoid administration or liquidation

The First Division club confirmed a delay in payments after the players who were expecting to their wages were informed of the situation.
But the club say players and staff will receive their wages next week.
Dundee are locked in talks with the taxman to avoid administration after being served a tax bill for £365,000 that is due immediately.
Manager Gordon Chisholm informed his players of the delay but admitted he was in the dark concerning the club's financial plight.
"The wages will be paid hopefully at the beginning of next week," he said. "That's what I've relayed to the boys.
"And as far as I'm concerned that's as much as I can tell them because it's as much as I know.
"I've been totally honest and up front with them. There's nothing to hide. It's not just the players, it's everybody at the club. Hopefully, it's just a delay and we'll get them at the beginning of next week."
The club have appointed insolvency practitioner Blair Nimmo to liaise with Her Majesty's Revenue and Customs.
However, survival now seems to rest on benefactor Calum Melville agreeing to underwrite a portion of the tax demand.
Local businesses have already pledged to raise £75,000 towards the amount that is due in full to HMRC.
HMRC is seeking payment for the period between January and April 2010, when the club failed to pay their PAYE and National Insurance bill.
However, the taxman could lose out entirely with the club owing around £1.6m to directors Melville, Bob Brannan and landlord John Bennett in soft loans.
The trio could push through a creditors voluntary arrangement, which would apply to all creditors, writing off the money due and forcing the club into administration.
With HMRC no longer having preferred creditor status, it would lose out on almost all of the money due to them.
Penalties available to the Scottish Football League range from a points deduction to relegation, so the club are keen to come to a deal with the tax authorities.
A pledge made last weekend by Melville to lodge a six-figure down-payment and provide a legally-binding personal guarantee to cover the club paying the outstanding balance in instalments is the best hope of avoiding administration, if HMRC accepts that offer as opposed to its demand for immediate payment.​
 
oh no :'( i like dundee hope they survive
 
Dundee have no room to move here, he is totally right when he says the Tax man is looking to make an example of them, they went after pompy and couldnt nail them
 
NO they can't die. I won't have a native team to support. And by god I won't support United.
 
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