Rangers deducted 10 points after administration move confirmed
Published 14/02/2012 | 15:42
GLASGOW Rangers were today deducted 10 points by the Scottish Premier League after appointing administrators following a legal debate with Her Majesty's Revenue and Customs.
Rangers appointed their preferred administrators, Duff and Phelps, after HMRC lodged their own petition at the Court of Session to put them into administration, 24 hours after the club filed notice of their intention.
The SPL later confirmed Rangers had been hit with the automatic points deduction, which leaves them 14 points behind leaders Celtic and nine above third-placed Motherwell.
Rangers owner Craig Whyte yesterday argued there was no reasonable alternative to administration unless an agreement could be reached with HMRC, due to combination of the club's ongoing financial situation and the impending result of the HMRC first tier tax tribunal. Rangers said a final decision would be taken in 10 working days.
However, it emerged in court today that Rangers had lodged their intention yesterday moments before HMRC attempted to put them into administration.
Press Association Sport understands that HMRC's court action this week has nothing to do with the so-called 'big tax case' surrounding employee benefit trusts, which was heard at a tribunal last month, but on unpaid bills such as VAT and PAYE from the current financial year.
An HMRC statement today read: "We can't discuss specific cases for legal reasons but tax that has been deducted at source from the wages of players and support staff such as ground keepers and physios, must be paid over to HMRC.
"Any business that fails to meet that basic legal requirement puts the survival of the business at risk."
No decision has been made on the major tax dispute, which centres on payments made between 2001 and 2010, and which Whyte revealed last night could cost them £75million.