Rangers deny club could be close to collapse

RANGERS last night denied their chairman Alastair Johnston had agreed the club could go out of business if found liable for heavy financial penalties as a result of an ongoing HMRC investigation.

The club yesterday published interim accounts which revealed reductions in turnover and profit while they await the outcome of businessman Craig Whyte's proposed takeover of the club.

HMRC's inquiry into offshore payments made to Rangers players has been hanging over Ibrox for months amid speculation they could face a tax bill in excess of 30 million.

The interim accounts, for the period to 31 December, 2010, also included a separate potential tax liability of 2.8m, uncovered during Mr Whyte's process of due diligence, in relation to a discounted option scheme associated with player contributions from 1999 to 2003.

Rangers are contesting the larger HMRC case. But Mr Johnston had conceded Rangers would find it difficult to pay any sizeable sum to HMRC.

According to reports following his briefing with broadcast media at Ibrox, Mr Johnston had nodded in agreement when asked if that meant Rangers could go out of business.

"The reality is that, if the decision is bad and the club can't pay, there would be a decision to be made," he said.

But Rangers, in a statement issued to the PLUS Stock Exchange, later insisted Johnston's comments had been misrepresented.