HMRC has agreed on a £56million settlement in the Rangers 'Big Tax' case. The agreement brings to an end the legal battle over the oldco's finances, which has lasted for nearly 11 years. The majority of the money owed relates to the controversial employee benefit trusts (EBT) scheme, which saw players and staff receiving payments. Nearly £49million was paid out to a host of employees, including Gers legends Craig Moore, Lorenzo Amoruso, Kris Boyd, Barry Ferguson, Graeme Souness, Alex Mcleish and Fernando Ricksen.
Sir David Murray, Stefan Klos, Marvin Andrews, Nacho Novo, Ronald de Boer, Steven Davis, Thomas Buffel, Zurab Khizanishvili and Tore Andre Flo were also among those to benefit from the scheme. A letter from BDO, dated Wednesday, December 7, 2022, and signed by liquidators James B Stephen and Malcolm Cohen reveals that, on December 10, 2021, the value of the claim was £64,514,000. But it says an agreement has now been reached to repay £56,000,000.
It adds: "We are pleased to advise that since the last report, we continued extensive and collaborative discussions with HMRC to reach a negotiated resolution in relation to the remaining elements of the claim. After significant input from BDO’s Tax Dispute Resolution team, together with our legal advisors, we were able to reach a composite settlement of £56m for the whole of the HMRC claim. Formal settlement documentation will ensure that HMRC will not raise any further claims in the liquidation. The agreed settlement with HMRC reflects the outcome of the Supreme Court decision in 2017.
"This composite settlement represents an agreed reduction to HMRC’s initial submitted claim in the liquidation. As a result, all other unsecured creditors should receive dividends totalling approximately 5.3p in the £ more than they would have otherwise received. It also negates the need for further protracted litigation which could have been costly to the liquidation estate. The Joint Liquidators have been in consultation with the Committee and it was agreed that the composite settlement of £56m was a positive outcome for the creditors."
The report states that, last year, more than £10million was said to be owed due to the "Craig Whyte era". That relates to the non-payment of PAYE and VAT while he was in charge at Ibrox, after buying the club for £1 from Sir David Murray. The club's operating company, RFC 2012 P.L.C, which was formerly The Rangers Football Club P.L.C, entered administration in February 2012 and was liquidated in October that year. The total debts claimed against the club amounted to £168.8million, with HMRC claiming it was owed £94.4million in 2012.
The settlement for £56million means HMRC will receive £38m less than was originally claimed was owed. An HMRC spokesperson said: "The Supreme Court ruled in HMRC’s favour in the case against Rangers’ tax avoidance scheme. We are pleased to have reached a settlement with the liquidators to recover the money due as a result of this judgment."
In 2015, the Record revealed the list of players and staff who had benefited from the EBT scheme - and how much each person was paid.
Don't miss the latest news from around Scotland and beyond - Sign up to our daily newsletter here.
