A report in The Times based on ‘accountancy sources’ has claimed that HMRC over-estimated The Big Tax bill for the old Rangers club by £50m. Bizarrely the report claims that the club went into administration followed by liquidation because of the blunder.
The reality is that Rangers stopped paying income tax and national insurance to Her Majesty’s Revenue and Customs in September 2011 after Ally McCoist steered the club to defeats in the Champions League and Europa League qualifiers.
During the summer of 2011 the club splashed the cash to sign Lee Wallace, Matt McKay, Dorin Goian and Juan Ortiz while handing out lucrative new contracts to Steve Davis, Allan McGregor and Steven Whittaker.
That cunning plan was based on bringing in £20m from the Champions League but when that door closed the club was doomed with the final Big Tax Bill still to be calculated never mind delivered.
Undeterred by the facts The Times, which manages to use the phrase ‘the Rangers operating company was put into liquidation’ reports:
A multimillion-pound blunder by the tax authorities is being blamed for the financial implosion that wrecked Rangers Football Club and sent shockwaves through the sporting world.
Up to £50 million is set to be wiped off the tax bill owed by the Ibrox club’s old operating company after HM Revenue & Customs acknowledged it had claimed for too much, The Times can reveal.
Accountancy sources now believe the outstanding bill for using an offshore trust to pay Rangers players and staff is likely to stand at the far more affordable figure of £20 million. That is equivalent to £2 million annually for the 2001 to 2010 period the tax avoidance scheme was in place.
Detailing the £50m blunder The Times gives a breakdown of £26m with other undisclosed figures apparently in the pipeline.
HMRC has been challenged on its methodology for some elements of its claims against “oldco” Rangers and a £24 million penalty charge has been wiped out. A further £2 million has also gone after certain parts were agreed to have been overstated and there may be a further reduction in the pipeline.
BDO has been involved in the liquidation of the club since 2012, running up enormous fees while 267 creditors have basically been left high and dry as a new club benefits from the knock down sale of Ibrox Stadium and Murray Park for a combined fee of £5.5m.
The reports from ‘accountancy sources’ was put to John McClelland to express his horror.
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While supporters of Motherwell, Dundee, Livingston, Dunfermline and Hearts bandied together to raise funds to produce a CVA, Ibrox fans spent their time looking for a sugar daddy.
With the current club facing a £10m black hole for this season before they fork out damages owed to Sports Direct in January any form of deflection away from the real issue takes the pressure away from the current club.
CLICK HERE to read the article from The Times.