Former Rangers Chairman Claims Tax Authority 'Targeted' Club

Former Rangers chairman Sir David Murray has stated that he might still be in control of the club if the tax authority, HMRC, had not allegedly "targeted" the Ibrox outfit. Murray sold his majority stake in the club to Craig Whyte in 2011 under pressure from the Bank of Scotland and with an agreement that his successor would settle approximately £20 million in debts.

This sale occurred amidst significant uncertainty surrounding a tax claim from HMRC. This claim deterred other potential buyers, and the club ultimately entered liquidation in 2012 due to a separate £10 million tax debt accrued during Whyte's tenure. Liquidators BDO later reported an initial HMRC claim of £73 million related to Rangers' use of tax-avoiding Employee Benefit Trusts (EBTs) under Murray's chairmanship, with roughly half of that sum accounting for interest and penalties. The final EBT debt for the liquidated oldco Rangers was recorded as £41.6 million in 2024.

Speaking on the Graeme Souness Tackles podcast, Murray elaborated on the financial pressures. "We won three (titles) in a row when I left and had started building up again. When Rangers got hit with the tax bill from HMRC of £85 million, they started loading penalties on to us, and the bill got to about £130 million," he said. "Obviously we were in trouble but, on top of that, the biggest thing that hit me was that the Bank of Scotland went bust."

Murray described the situation as a "cul-de-sac with nowhere to go," exacerbated by the Bank of Scotland's collapse, which left the club with a £130-140 million charge. He expressed frustration that the penalties imposed by HMRC were later found to be illegal, with the final figure settling at £33 million. Murray believes Rangers "did not need to go bust but HMRC identified 'this is the target we are going to get'."

During Murray's tenure, the club's confirmed debts peaked at £74 million before he heavily underwrote a £57 million share issue in 2004. Rangers utilized EBTs from 2001 to 2010 to reduce its wage bill. An HMRC investigation into these arrangements concluded in the Supreme Court in 2017, with HMRC ultimately prevailing.

Murray acknowledged to Souness that he was sometimes swayed by the pressure to satisfy supporters, admitting, "I didn’t really want to do another £50 million rights issue but I found another £50 million to keep it going." He also conceded that some decisions may have been driven by vanity rather than sound financial judgment.

In 2019, HMRC responded to claims of overstating the tax demand by stating on Twitter that they "won against Rangers’ tax avoidance in the Supreme Court, and did not miscalculate anything."