Liquidator BDO has reached a £56m agreement with HM Revenue and Customs to close its tax case against Rangers’ use of employee benefit trusts.
BDO says “formal settlement documentation will ensure that HMRC will not raise any further claims in the liquidation”.
The Supreme Court ruled against the club in 2017.
BDO says it “represents an agreed reduction to HMRC’s initial submitted claim in the liquidation”.
HMRC was originally claiming £64.5m and the settlement represents a 13.2% reduction on that.
“As a result, all other unsecured creditors should receive dividends totalling approximately 5.3p in the pound more than they would have otherwise received,” BDO states in its concluding report.
“It also negates the need for further protracted litigation, which could have been costly to the liquidation estate.”
HMRC pursued the case after arguing that more than £47m paid to players, managers and directors between 2001 and 2010 in tax-free loans were earnings and should be taxable.
The court’s decision was not expected to have any material or financial impact on Rangers now as the club is owned by a different company.
Two tribunals in 2012 and 2014 had previously found in Rangers’ favour, but the Court of Session found in favour of HMRC after an appeal in 2015.
Liquidator BDO was then allowed to appeal to the Supreme Court in London, but that was dismissed in 2017.
