I dont have an opinion one way or the other on the whole thing,and I am in no way shape or form a legal expert.
However,I believe that HMRC tried to challenge the principle of football creditors being paid in preference,in the High Court in 2004.
They lost.....so I believe that this establishes some sort of legal precedence.....??

So when their spokesman says that "there is nothing in insolvency legislation................etc.............",then at best he is being disingenious.

And at worst he is guilty of not telling the whole truth and nothing but the truth...

About time too. What is not always made clear is that HMRC are not after Corporation Tax (Income Tax for companies)from football clubs but PAYE tax deducted from players' wages. The money, therefore, does not belong to the clubs in the first place.
On the High Court point the court noted: "The power of the league to impose the obstacle and secure full payment for creditors of its choice may be objectionable and indeed the All Party Parliamentary Group in its First Inquiry Report has found it objectionable and recommended its abolition." The case was not a 'test case' and the ruling applied only to the peculiar circumstances of Wimbledon F C. It does not set any sort of precedent.

It is not only clubs that are attracting the interest of HMRC in respect to tax avoidance. I have it on good authority that cases are being prepared against a number of high profile football individuals which may well break in 2011. Mums the word.

I always get a bit annoyed when the inference is that HRMC have done something wrong. They are collecting "our" money. Sure there is some sympathy for the clubs but they have not being paying tax fully which essentially is not paying as we would.
Further to that, the winding up order is very much a last resort in business for a business, but what other manouvre does the HRMC have? They are not giving a service or a product so cannot remove it. St John's ambulance could refuse to go to games as a first action to get money back. HRMC can only issue to winding up order to have any sort of leverage.

"HMRC ushered in 2010 by putting Crystal Palace into administration..."

Not True. Crystal Palace were placed into administration by their largest creditors - "Global Management" company Agilo.

"The only two clubs killed off by HMRC in 2010 ? Chester City and Ilkeston Town ? were outside the Football League"

Neither Chester City nor Ilkeston Town were killed off by HMRC. The people responsible for running up debts that they then did not pay (Stephen Vaughan in Chester's case, Chek Whyte in Ilkeston's).

"If a club goes into administration, football-related creditors, ie other clubs, players or managers, get paid first. "

There is a specific definition of what Football Creditors (not football-related creditors) are, and it is defined by the sport's governing body, and if the criterion aren't met, then the club cannot continue, which hurts everybody in the long run. The club's staff (all staff, everyone from paid directors down to the catering staff and the stewards), and their pensions are protected by the Football Creditors ruling. Clubs outside the auspices of the FA (is ones that abroad, or in the Scottish, Welsh or Northern Irish setups), and former employees seeking compensation (including ex-managers - players have to be paid up in full before they leave a club) are not.

"We are acting in the interests of creditors not in the football industry. We don't think its right they are offered a tiny percentage of a debt owed to them, against full repayment to all others in the industry."

Well, they are not - they're purely acting in their own interests. And there's nothing wrong with that at all (as donedmundo says). After all, before 2003, the Taxman was considered a supercreditor by law, and received the same protection as Football Creditors did, and I don't recall the Taxman fighting on other creditors behalf them.

The Football Association have it in their power to stop HMRC persuing the Football Creditors ruling. All they have to do is add HMRC to the list of Football Creditors. But, as long as the majority of the FA that creates the rules is made up by representatives of the clubs, and as long as the clubs vote people such as Ron Martin (who has referred to the Taxman as 'HMRC Bank plc' such is his usage of the Tax system) as their representatives at Football League or FA level, then things won't change. After all, it is the clubs that end up getting punished, and not the individuals responsible.

HMRC should chase clubs who default for every penny.

These clubs are not only cheating the taxpayers of the country, they are also gaining an unfair advantage over the clubs that DO pay their bills on time.

One of the reasons I detest Leicester City with a passion is that they had a nice shiny new stadium built, decided they couldn't afford it, went into administration and effectively got away scot free.

Grossly unfair on all the clubs they are competing against.