Source: Team_Talk
Judge: Rangers could go under
A judge who froze £480,000 of Rangers' cash said the club appreciates it could go under if it loses its £49million tax battle.[LNB] 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.[LNB]Bain is suing Rangers for £1.3million in compensation after his association with the club ended following Craig Whyte's takeover as chairman in May.[LNB]Rangers are also involved in two separate cases with HM Revenue and Customs (HMRC), both relating to payments made before Whyte took over as owner.[LNB]The club has not paid a £2.8million 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.[LNB]And an ongoing tax tribunal, which it is claimed could cost the club up to £49million, will resume in November.[LNB]Lord Hodge set out his view in a document published on Friday.[LNB]He said the takeover deal for Rangers had been "carefully structured" to protect the new owner if the tax case was lost.[LNB]Lord Hodge said it showed "an appreciation" by the Rangers group "of a risk of insolvency resulting from that claim".[LNB]The judge added: "When I asked Mr Napier (the club's QC) if he could clarify Rangers' position in relation to the HMRC claim for £49million, which Mr Bain averred comprised a claim for £35million of tax and £14million in interest and penalties, he was not able to assist as he had no instructions in relation to that matter.[LNB]"I must therefore treat Mr Bain's assertions as to the extent of HMRC's claim as uncontradicted, although I acknowledge that the claim itself is the subject of an appeal by Rangers."[LNB]Rangers have also said they will appeal any ruling which says the club should pay Bain for his unfair dismissal claim.[LNB]A spokesman said: "The club is disputing any money is due to Mr Bain and we will be vigorously appealing the decision. It should be noted the case taken against Rangers has not yet been proven or even heard yet. All that has happened is that a sum of money has been set aside if the club were to lose the case."[LNB]Whyte has previously dismissed fears that the tax claim, which is expected to be heard in November, could threaten the existence of the club.[LNB]He told RangersTV: "In terms of the first case, we are looking through the paperwork of that at the moment.[LNB]"We weren't given sight of the paperwork initially by HMRC and it's unfortunate the way that case has been dealt with.[LNB]"However, we are working with HMRC now to try to resolve it.[LNB]"We are not there yet. They have put further penalties on it which we are disputing. So we hope to get it resolved and it is under discussion at the moment.[LNB]"In terms of the second case, I believe the tribunal meets in November to discuss the other case. We are told by our counsel that he is confident we can win the case.[LNB]"Rangers will be here and playing at Ibrox long after we are all dead and buried regardless of what happens in the HMRC case - there is no doubt about that."
