Rangers appreciate club could go under because of tax battle, says judge

A JUDGE who froze £480,000 of Rangers’ cash said the club appreciates it could go under if it loses its £49 million tax battle.

The Glasgow side was told by Lord Hodge last Tuesday that it should set aside the sum of money to prepare for the event that former chief executive Martin Bain wins his unfair dismissal case against them.

Mr Bain is suing Rangers for £1.3m in compensation after his association with the club ended following Craig Whyte’s take-over as chairman in May.

Rangers are also involved in two separate cases with HM Revenue and Customs, both relating to payments made before Mr Whyte took over as owner.

The club has not paid a £2.8m tax bill which first emerged in April relating to payments made to staff from 1999 to 2003, but it is believed to be disputing a fine that goes with it.

And an ongoing tax tribunal, which it is claimed could cost the club up to £49m, will resume in November.

Lord Hodge set out his view in a document published yesterday.

He said the takeover deal for Rangers had been “carefully structured” to protect the new owner if the tax case was lost. Lord Hodge said it showed “an appreciation” by the Rangers group “of a risk of insolvency resulting from that claim”.

Rangers have also said they will appeal against any ruling which says the club should pay Mr Bain for his unfair dismissal claim.