Rangers blame HMRC for driving club to brink of administration

RANGERS have lodged papers with the Court of Session in Edinburgh declaring their intention to go into administration.

The Ibrox club yesterday lodged papers signalling their intent to go into administration – an act which does not in itself make administration inevitable. But according to Rangers, barring a last-minute change of heart by HMRC, the club will be left with no alternative but to take that dramatic step.

Owner Craig Whyte claimed he took the decision to ensure Rangers did not die altogether under the potential burden of a “shocking” tax bill which could be as high as £75 million.

“The £49m often quoted is the tax bill and interest but they can charge you a penalty on the tax bill so we could have been up at £75m,” Whyte said last night. “It is a shocking figure and there is no way we could pay it.”

Administration would bring a ten-point deduction and would likely lead to the sale of on-field assets. Rangers would also face a race to prove to the SFA that their finances are in shape before 31 March or face expulsion from Europe next season.

The tax tribunal had previously been presented as one which would result in a clear victory for either side. If Rangers won, they would at last be liberated from the threat of a huge tax bill; if the Revenue won, the government would recoup the cash. Now, however, Rangers have claimed that a different scenario is in place; one which would effectively place them under severe trading difficulties even if they won the case.

That is because, as the club explained in a Question & Answer article on their website last night, it has been told that HMRC will appeal if it loses the case – and that such an appeal could last years, which would affect Rangers’ ability to trade.