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| Version 0 | Version 1 |
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| HMRC to ask court to put Rangers into administration | HMRC to ask court to put Rangers into administration |
| (40 minutes later) | |
| HM Revenue and Customs (HMRC) is set to ask the Court of Session to put Rangers Football Club into administration. | HM Revenue and Customs (HMRC) is set to ask the Court of Session to put Rangers Football Club into administration. |
| The legal move counters the club's bid on Monday to file for protection against its creditors. | The legal move counters the club's bid on Monday to file for protection against its creditors. |
| The papers served on behalf of Rangers directors would give the club 10 days to resolve its differences with HMRC. | The papers served on behalf of Rangers directors would give the club 10 days to resolve its differences with HMRC. |
| However, the response from HMRC suggests it is seeking to take charge of events. The court hearing is set to take place on Tuesday morning. | However, the response from HMRC suggests it is seeking to take charge of events. The court hearing is set to take place on Tuesday morning. |
| If Rangers is placed in administration the club would suffer an immediate 10-point penalty from the Scottish Premier League. | |
| Owner Craig Whyte confirmed on Monday that the club had filed legal papers at the Court of Session in Edinburgh to appoint administrators. | |
| Tax dispute | |
| It was thought that the club had 10 days to make a decision on whether to proceed, but the HMRC action may change the dynamic of the situation. | |
| The two parties are at loggerheads over a disputed tax bill and penalties of up to £49m. | |
| HMRC believes the Ibrox club owes the cash over its use of Employment Benefit Trusts (EBTs) to pay staff over a 10-year period. | |
| It alleges the Ibrox club did not administer the scheme properly and underpaid tax. | |
| Rangers disputes this and has contested the claim in a first tier tax tribunal, which is due to report within weeks. | |
| After the club signalled its intention to go into administration, owner Craig Whyte said the eventual tax liability facing Rangers could be as high as £75m - a sum it would be unable to pay. | |
| He said the best outcome would be to reach a creditors agreement which would allow the club to continue trading. | |
| Mr Whyte is believed to be a secured creditor of Rangers and could collapse the club if HMRC block a creditors agreement. | |
| The chairman could opt to pursue the legal routes of receivership or pre-pack administration to avoid paying any tax liabilities. | |
| These routes would involve Rangers' assets being transferred to a new company or companies and the old club - formed in 1873 - being left behind with the unpayable debts. It would, almost inevitably, be wound up. | |
| In these cases, HMRC, as an unsecured creditor, would receive very little if anything. | |
| The moves over administration from HMRC could be viewed as part of ongoing manoeuvres to exert some control over any insolvency process. |