Rangers Oldco pursues reduction of multi-million-pound tax bill
The liquidators of the Rangers Oldco have revealed that they are hoping to reduce the size of the tax liability owed to HMRC.
BDO is disputing about £51 million of the £64.5m which is still being claimed by HMRC.
Around £30m has already been written off the original sum that HMRC thought they were due when the company, now known as RFC 2012, went into insolvency nearly ten years ago.
The majority of the remaining balance, almost £48.9m, relates to the use of employee benefit trusts for former staff and players under what came to be known as the big tax case.
BDO is disputing that figure along with amounts owed under inheritance tax, £1.3m, and a separate smaller tax case, £1m. Much of what BDO has admitted the oldco is due is the £10.3m of PAYE and National Insurance which went unpaid while Craig Whyte was owner of Rangers, The Times reports.
In the latest update to creditors, BDO said much of the focus of recent months was on court proceedings against the team from Duff & Phelps, which handled the administration of the Oldco. In November, Lord Tyre ruled in BDO’s favour in a Court of Session judgment which suggested the administrators, David Whitehouse and Paul Clark, had breached their duties by failing to sell marketable players and not considering a sale and leaseback of Ibrox stadium.
However, the award of £3.4m plus interest and costs was some way below the near £57m which BDO had been aiming for.
BDO has since confirmed a sum of £4.7m had been received by its legal team. However, talks about how much of the costs of the case BDO can recover are ongoing.
BDO believes it will be in a position to pay further money back to creditors but warned the “timing and quantum will be dependent on the finalisation of the HMRC claim and the ultimate recovery of expenses from the former joint administrators”.