FORMER Rangers and Scotland skipper Barry Ferguson has been made bankrupt with debts of more than £1.4million.
He is one of a number of former Ibrox stars who faced paying back money they had received in Employee Benefit Trusts (EBTs) after Rangers lost a battle with HMRC at the Supreme Court earlier this month.
Ferguson, 39, who recently stepped down as manager of Clyde, received £2.5million in EBT payments.
He also invested in a film production partnership called Eclipse which has targeted by HMRC after being ruled to be a tax avoidance scheme.
Ferguson, who also played for Blackburn Rovers and Birmingham City, applied for his own bankruptcy after running up debts of £1,425,633 and it was approved by the Accountant In Bankruptcy, Scotland’s insolvency service, earlier this month.
A bankruptcy trustee, Maureen Leslie of Glasgow-based insolvency specialists MLM Solutions, has been appointed to take control of his assets and try to recover money owed to creditors.
Ferguson, who lives in a gated mansion near Larkhall, Lanarkshire, has declared that he has only £3,000 worth of assets available to help pay off his creditors.
The so-called Rangers ‘big tax case’ centred on the use of EBTs. More than £47million was paid to players, managers and directors between 2001 and 2010 in tax-free loans.
Earlier this month judges found that ‘loans’ paid to players and staff were in fact taxable earnings , in a decision that brought to a close legal proceedings that have dragged on for years.
HMRC said the ruling proved the EBT scheme was “contrived” in that it presented payments as “loans” rather than earnings, amounting to “tax avoidance”.