The owner of embattled Scottish football giant Rangers says he took the first step towards administration to ensure the club did not die under the potential burden of a “shocking” STG75 million ($A111.22 million) tax bill.

The club has lodged legal papers with an Edinburgh court, signalling their intention to enter administration.

The Scottish champions are awaiting the verdict of a tax tribunal involving HMRC (HM Revenue and Customs).

The club thought it could have to pay about STG49 million if the judgment went against them but Whyte revealed that figure was substantially out.

The case centres around the use of employee benefits trusts (EBTs) which were in place before Whyte took over from Sir David Murray last May.

Whyte said it was necessary to look at administration.

“If we hadn’t done that then liquidation could have been a possibility,” he said.

“This secures the long-term future of the club.

“The 49 million (STG) often quoted is the tax bill and interest but they can charge you a penalty on the tax bill so we could have been up at 75 million.

“It is a shocking figure and there is no way we could pay it.”

Whyte was heckled by some Rangers fans when he emerged from Ibrox on Monday evening to read a statement outlining his intentions.

The Motherwell-born businessman admitted it had been a “tough day” but insists he has no intentions of leaving the club.

“I can understand how the fans feel,” he said.

“But I came in to sort out the financial situation and that’s what I will do.

“It has been a tough day. No one likes it but I am doing what has to be done.

“I would say to the fans to stick with (manager) Ally McCoist and the team, they need you more than ever.

“I have not gone through what I have gone through in the last year to walk away. I am here to stay.”

Amid a long explanatory statement on the club’s website, Whyte outlined why he believes winning the tax case is unlikely.

“There is no realistic or practical alternative to our approach as HMRC has made it plain to the club that should we be successful in the forthcoming tax tribunal decision, they will ‘appeal, appeal and appeal again’ the decision,” he said.

“This would leave the club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC.

“Even if the club were to succeed in the tax tribunal, it would still face substantial liabilities. Zero liability will not happen.”

Rangers are four points behind Scottish Premier League leaders Celtic and 19 above nearest challengers Motherwell, who have a game in hand.

Administration would bring an automatic 10-point deduction and would likely lead to the sale of players while manager McCoist could expect to see further reductions in the size of his squad.

Rangers also face a race to prove to the Scottish Football Association that their finances are in shape before March 31 or face expulsion from Europe next season.

Although there is no specific ban on clubs in administration playing in Europe, it is understood it would be very difficult for such a club to meet the other financial criteria needed for a licence.

“We are not in administration yet,” said Whyte, while claiming this move was the first step on the “road to recovery”.

“The fact is there no way Rangers can pay that tax bill if that judgment goes against us, it just can’t be done.

“I have to make the decision for the long-term future of Rangers.

“This was discussed long before my time when the tax case first became known and it is a really tough decision.

“I bought the club with this tax case hanging over it, it was always an option. We hoped we would find a way to resolve it without going down this route.

“It became apparent at the end of last week that HMRC would not do a deal with us and so we had no choice.

“We will exit administration, we hope, by means of a CVA, which will deal with creditors.

“I don’t want to get into that now but that is how we will exit administration, if indeed we go into administration.

“Keep in mind we are not in administration at the moment.”

Whyte bought out Murray’s shareholding while pledging to pay off STG18 million ($A26.7 million) owed to Lloyds Banking Group and invest about STG25 million in the playing squad over five years.

The club have still not published audited accounts due before the end of last year or held an AGM as required.

That led to trading on their shares being suspended last month by the PLUS Stock Exchange, who are investigating Whyte’s admission that he had been disqualified as a director for seven years from 2000. A similar SFA inquiry into Whyte’s business background is continuing.

Last week former Rangers chairman Alastair Johnston revealed he had asked the Government’s Insolvency Service to clarify “certain financial arrangements” relating to the takeover.

Whyte had earlier admitted securing funds from loan company Ticketus in lieu of future season ticket sales but denied using the cash to fund his takeover.