Taxman rejects Farsley proposal

Farsley Celtic's future is in doubt again after HM Revenue & Customs rejected the club's proposal for paying off its tax debt.

The Blue Square North side went into administration in the summer and owe around £200,000 in unpaid taxes.

HMRC are unhappy at Farlsey's plan to pay football creditors in full, but limit their tax repayments.

Supporters club spokesman Phillip Morris told BBC Radio Leeds: "Our position is very unclear now."

Football rules state that clubs have to gain a Company Voluntary Arrangement (CVA) to officially come out of administration and be allowed to compete at their particular level.

For Farsley to gain a CVA they need HMRC to accept their proposal.

Clubs who have previously failed to secure the agreement have been allowed to continue to play, but have been hit with serious points deductions.

Farsley have already been hit with one penalty, as they started the season with a 10-point deduction for going into administration.

Morris explained: "As I understand it an offer was made to the administrators, which they saw as reasonable, for the purchase of the football club and the CVA.

"HM Revenue & Customs appear to be of the view that if the football creditors are required to be discharged in full then so should they. That appears to be why they have rejected the offer.

"Rules state we must gain a CVA to be in the league and so this puts a question mark on it all.

There is no reason why the fixtures can't be fulfilled in the coming weeks until this is sorted out

Phillip Morris

"There are numerous options open to us at the moment, but I wouldn't speculate on those. What I would say is that it is business as usual at the moment. The club is functioning very well at the moment.

"As things stand at present there are interim arrangements in place to allow the running of the football team to be undertaken by the proposed new consortium.

"Therefore there is no reason as to why the fixtures can't be fulfilled in the coming weeks until this is sorted out," said Morris.

"The consortium and administrators are resolute that Farsley Celtic will still be here in 12 months time."

Farsley are currently bottom of Blue Square North with six points after 12 games - five points away from safety.