Former Rangers and Scotland international Barry Ferguson has been declared bankrupt with debts of more than £1.4 million, reportedly owed to HMRC, according to The Herald.
Ferguson was one of 80 recipients of Rangers’ controversial EBT scheme and received £2.5 million in payments. Earlier this month, Rangers lost a long running battle with HMRC over the EBT scheme after the Supreme Court ruled in favour of the taxman.
The 39-year-old faced paying back the money he had received to Rangers’ liquidators BDO and with the former Clyde manager also investing in a film tax avoidance scheme called Eclipse – along with the likes of Gordon Durie, Darren Jackson and Derek Whyte – he was set to be hit with a huge tax bill.
Ferguson applied for his own bankruptcy after running up debts of around £1.4 million and was approved earlier this month.
Insolvency specialists MLM Solutions has been appointed to take control of Ferguson’s assets and to recover money owed to creditors. However, Ferguson has declared that he has a total of £3,000 worth of assets available to pay off his creditors.
There is no news on who has ownership of Ferguson’s cars or multi-million-pound mansion, although if these were in his name then the Insolvency firm could potentially seize them to pay creditors back.
Ferguson’s bankruptcy news could prove to be the first of many former footballers and club officials, who took advantage of tax avoidance schemes, declaring bankruptcy to avoid paying tax owed.