Unpaid tax bill forces Gers into administration

Rangers were forced into administration yesterday over an unpaid tax bill of £9 million (€10.7m) — accrued since Craig Whyte’s takeover.

Rangers appointed corporate financial advisers Duff and Phelps following several hours of legal debate with Her Majesty’s Revenue and Customs.

Duff and Phelps later said in a statement: “The appointment follows a petition for administration presented to the Court of Session in Edinburgh today by HMRC following the non-payment of circa £9m (€10.7m) PAYE and VAT following the takeover of the club in May 2011.”

On Monday, Whyte argued there was no reasonable alternatives to administration unless an agreement could be reached with HMRC, due to a combination of the club’s ongoing financial situation and the impending result of the first tier tax tribunal.

Whyte stressed the importance of the so-called ‘big tax case’, which he claims could cost the club £75m (€90), and Rangers said a final decision would be taken in 10 working days.

But it emerged in court yesterday that Rangers, who have been deducted 10 points by the Scottish Premier League, had lodged their intention on Monday, moments before HMRC attempted to put them into administration.

And it was later confirmed that HMRC’s action had nothing to do with the dispute surrounding payments made to employee benefit trusts from 2001 to 2010, which was heard at a tribunal last month, but on unpaid bills from Whyte’s tenure.

An HMRC statement read: “We can’t discuss specific cases for legal reasons but tax that has been deducted at source from the wages of players and support staff such as ground keepers and physios, must be paid over to HMRC.

“Any business that fails to meet that basic legal requirement puts the survival of the business at risk.”

Whyte later admitted the club had been running at a loss for some time, resulting in the “regrettable’’ outcome of administration, which leaves them 14 points behind SPL leaders Celtic.