Rangers are preparing for a "huge week" in the club's history as the tax tribunal that could send them into administration resumes today. The first tier tribunal is scheduled to meet in Edinburgh for three days in order to decide whether, as Her Majesty's Revenue and Customs argue, the Ibrox club is guilty of alleged tax evasion through the use of Employee Benefit Trusts during the time when Sir David Murray was owner.
Should the verdict go against Rangers then the club could face a total bill of £49million which would almost certainly mean administration. Rangers current owner Craig Whyte was aware of the issue when he bought Murray's majority shareholding last May for £1 and has admitted that administration is a possibility. Discussions with HMRC are still ongoing over a separate tax bill of £2.8million which the Govan club are disputing.
A committee will decide Rangers' fate but may not reveal that decision until six to eight weeks after the conclusion of the tribunal. The Ibrox source has claimed that, on advice from their legal team, the club "remain confident" of winning their case. However, the club wants the situation to be resolved as soon as possible. The source said: "The club can't live like this, it is no way to run a business. There needs to be a resolution and some big decisions will have to be made."
To that end, plans are in place for three possible outcomes: Losing the case, winning the case and winning the case which is then subject to appeal by HMRC. However, swift action will be taken following the result of the tribunal to free the club from its "state of limbo".
Last week shares in Rangers were suspended from trading on the stock exchange due to the delay in publishing its audited accounts to June 30, 2011. The club told the Plus stock exchange that it is considering withdrawing its listing on the exchange in the long term.
Rangers said: "The delay has been caused as a result of finalising the audit, which the board believe will be complete on or around January 31, 2012. The delay in finalising the audit is principally related to the ongoing HMRC tax tribunal."
Source: FOOTYMAD
