.png)
Revenue drop case against Exeter
The Inland Revenue has dropped their case against Exeter City which aimed to get the club's Corporate Voluntary Agreement revoked.
The Exeter Express and Echo has reported that the club can now concentrate on the playing matters as opposed to legal issues.
Below is a summary of the case:
The Inland Revenue first launched a bid to scupper Exeter's attempts to clear its debts in November in what was described as a test case for football in this country.
The taxman - owed £365,718 by the cash-strapped Grecians - was left reeling after the club entered into a CVA, slashing its debts by 90 per cent.
While the Revenue had long been regarded as a preferential creditor - receiving full payment for money owed - the Enterprise Act removed that privilege, meaning they were entitled to just £36,571 from Exeter City.
As a result they mounted a legal case protesting against the "super-creditor" rule, which safeguards players, managers and other football creditors.
But as football united behind the Grecians, the taxman's case began to crumble after the club commissioned accountants Deloitte & Touche to produce a report into football finances and the rationale behind the creditor ruling.
Its findings, coupled with the fact that the Revenue had recently failed in its bid to revoke Wimbledon's CVA, persuaded them to drop the action and admit defeat.
Meanwhile there is no news on Hereford United's efforts to clear their CVA. It was reported that the Bulls had made an offer which the club hoped would be accepted by the main creditors, notably the Inland Revenue.