Telegraph 7/8/07
Pressure mounts on Ken Bates and Leeds
By David Bond
The tax authorities last night warned Leeds United chairman Ken Bates that they will not be dropping their legal action against the club, even though the Football League have given the the go-ahead to start the new season on Saturday.
Leeds have been granted permission to compete in League One even though the League's board ruled they had broken insolvency rules by failing to reach agreement with the club's creditors.
They handed back the League share to the club in "exceptional circumstances" but then docked Bates' club 15 points for failing to obtain the Company Voluntary Arrangement necessary when buying a team out of administration.
Leeds have appealed and a meeting of all 72 clubs is expected to make a final decision on Thursday - two days before Dennis Wise's side kick off the new season against Tranmere.
But even if that is resolved, there remains the threat of a legal action against the club and Leeds's administrators, KPMG, from HM Revenue and Customs.
A hearing has been set for Leeds County Court on Sept 4. HMRC are calling on KPMG and Bates to repay all the £7.7m owed in tax.
Pressure mounts on Ken Bates and Leeds
By David Bond
The tax authorities last night warned Leeds United chairman Ken Bates that they will not be dropping their legal action against the club, even though the Football League have given the the go-ahead to start the new season on Saturday.
Leeds have been granted permission to compete in League One even though the League's board ruled they had broken insolvency rules by failing to reach agreement with the club's creditors.
They handed back the League share to the club in "exceptional circumstances" but then docked Bates' club 15 points for failing to obtain the Company Voluntary Arrangement necessary when buying a team out of administration.
Leeds have appealed and a meeting of all 72 clubs is expected to make a final decision on Thursday - two days before Dennis Wise's side kick off the new season against Tranmere.
But even if that is resolved, there remains the threat of a legal action against the club and Leeds's administrators, KPMG, from HM Revenue and Customs.
A hearing has been set for Leeds County Court on Sept 4. HMRC are calling on KPMG and Bates to repay all the £7.7m owed in tax.