Administrator says Rangers’ final tax bill nearly £95m

THE final tax bill claimed by HM Revenue and Customs from Rangers was almost £95 million, according to club administrators Duff and Phelps.

In a concluding report to creditors ahead of oldco Rangers’ proposed liquidation at the Court of Session on 12 October, Duff and Phelps also said their own fees since taking control of the club in administration on 14 February this year are in excess of £3.1m. Of the liabilities due to HMRC, £18,324,285 was owed as a result of former owner and chairman Craig Whyte’s failure to pay PAYE and national insurance contributions during his ruinous tenure.

The sum of £3,052,482 was due to HMRC for the Discounted Options Scheme, often referred to as the ‘wee tax case’, which was settled with the authorities but not paid.

That leaves an estimated potential bill of £73,049,450 for the ‘big tax case’, the Employee Benefit Trust tax avoidance scheme operated by former owner Sir David Murray’s company which is the subject of an imminent First Tier Tribunal ruling.

“The joint administrators have continued to review the claims made by HMRC in the administration,” said a statement by Duff and Phelps in the final creditors’ report. “The claims are largely made up of determinations issued by HMRC in accordance with Regulation 80, penalties and outstanding PAYE/NIC. The joint administrators have adjudicated on these claims and confirmed to HMRC that for voting purposes, their claim will be admitted for voting purposes at £94,426,217.22.”

Creditors have until 12 October to vote on the report. If approved, Duff and Phelps will formally place The Rangers Football Club plc in the hands of liquidators BDO. The business and assets of the club in administration were purchased by Charles Green and his consortium for £5.5 million in June.