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Last Updated: Wednesday, 6 June 2007, 14:26 GMT 15:26 UK
Bates unhappy with Inland Revenue
Ken Bates
Bates arrived at Leeds in January 2005
Leeds chairman Ken Bates says the club had to go into administration due to the actions of the Inland Revenue.

Bates told BBC Radio Leeds: "The Inland Revenue acted extremely unreasonably.

"Over the last two-and-a-half years Leeds have paid between 15m and 20m to the Revenue, but our cash flow dried up and we asked for a holiday."

"The Revenue said no and put foward the petition to wind up the club. I'm sorry small creditors have lost money, but that is totally down to the Revenue."

Bates added: "We were happy to pay everyone over a period of time.

"The fault for Leeds United creditors should be place fairly and squarely at the Revenue's door.

On Monday Bates regained control of Leeds Utd following a recount of votes taken at last week's creditors' meeting.

After putting the club in administration with debts of 35m on 4 May, Bates required 75% of creditors' votes to buy the club back.

The recount showed that 75.2% of creditors backed his plans to offer them just 1p in the 1 of debts owed.

Bates, formerly owner of Chelsea, arrived at Leeds Utd in January 2005, when he bought a 50% stake.

The club went into administration last month, a move that meant it was docked 10 points which ensured its relegation to League One.

Leeds Utd's financial problems stretch back several years.

In 2001, Leeds reached the semi-final of the European Champions League, however, despite spending millions on players, the club failed to qualify for the competition in the following seasons.

This failure to qualify led the club to rack up huge debts. In October 2003, Leeds reported a pre-tax loss of 49.5m for the year to 30 June 2003, which at the time was a record annual deficit for a Premiership football club.

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