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| Version 1 | Version 2 |
|---|---|
| Rangers and HMRC in race to appoint administrator | |
| (about 1 hour later) | |
| Rangers Football Club is involved in a legal battle with the tax authorities to appoint an administrator. | |
| The club's legal team told the Court of Session in Edinburgh that moves were under way to appoint an administrator on Tuesday afternoon. | |
| HM Revenue and Customs (HMRC) is asking the court to appoint an administrator under its petition. | |
| The moves by both parties are attempts to control the insolvency process which is being faced by the Ibrox club. | |
| The hearing at the Court of Session in Edinburgh got under way on Tuesday. | |
| If Rangers is placed in administration the club would suffer an immediate 10-point penalty from the Scottish Premier League. | If Rangers is placed in administration the club would suffer an immediate 10-point penalty from the Scottish Premier League. |
| Mr Whyte confirmed on Monday that the club had filed legal papers to appoint administrators. | |
| Tax dispute | Tax dispute |
| It was thought that the club had 10 days to make a decision on whether to proceed, but the HMRC action changed the dynamic of the situation. | |
| The two parties are at loggerheads over a disputed tax bill and penalties of up to £49m. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | In these cases, HMRC, as an unsecured creditor, would receive very little if anything. |