Rangers 'paralysed' by tax bill

Soccer : Rangers owner Craig Whyte has admitted his club are facing a "crisis situation" over their ongoing tax dispute

Soccer: Rangers owner Craig Whyte has admitted his club are facing a "crisis situation" over their ongoing tax dispute. The Old Firm side are facing a €56.5 million tax bill and Whyte says they are "paralysed" by the case.

The Scottish champions are involved in two separate disputes with HM Revenue and Customs, relating to payments before Whyte completed his takeover.

The club have not paid a €3.2 million tax bill which first emerged in April, relating to payments made to staff between 1999 to 2003. They are believed to be disputing a fine that goes with it. And a tax tribunal, which could cost the club £49 million, will resume in November.

Whyte has always maintained he is confident of winning the case.

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But he told newspapers The Heraldand the Scottish Sun: "What we have to remember is that Rangers are in a crisis situation. It's a hard thing to live with: I think we need to get finality on it."

And the businessman appeared to suggest that Rangers may not appeal if a decision went against the club.

He said: "Since the very start of the process, I have had plans for all eventualities. I didn't come into this with my eyes closed. We need to move forward and, even though it may be a tough process, we must try to remove the uncertainty that is hanging over us. The club is paralysed right now.

"It affects us commercially. How can anyone enter into, say, a five-year deal with Rangers in the midst of this uncertainty?"

Former chief executive Martin Bain is also suing Rangers for breach of contract. His association with Rangers ended after Whyte's takeover in May.

Earlier this week, Whyte instructed his lawyers to begin legal proceedings against the BBC following claims made in the programme, BBC Scotland Investigates: Rangers The Inside Story, which explored his business dealings before he bought the club from David Murray in May.

BBC Scotland have said they stand by the investigation which was produced "according to our rigorous editorial standards on fairness, accuracy and impartiality".

They withdrew co-operation with the BBC ahead of the documentary, which the Clydesdale Bank Premier League club described as "little more than a prejudiced muckraking exercise". However, the BBC strongly rejected claims of bias against the club and insisted the content of the programme was accurate and in the public interest.