Rangers FC signals
Rangers Football Club has lodged legal papers signalling its intention to go into administration.

The Ibrox club lodged papers at the Court of Session in Edinburgh on Monday, notifying an intention to declare an administrator.

It now has five days to confirm whether administrators have been appointed to take over the running of the club.

The move comes while Rangers awaits a tax tribunal decision over a disputed bill plus penalties totalling £49m.

If the club is formally put into administration it faces an immediate 10-point penalty from the Scottish Premier League.

That would place the Ibrox club 14 points behind first-placed Celtic in the race for the championship.

Craig Whyte bought the club last year from Sir David Murray It is understood the papers relating to administration were lodged by Rangers' lawyers on behalf of directors.

Craig Whyte, who bought the club from former owner Sir David Murray last year, said recently that administration was an option if the club lost the tax case.

The case relates to the use of employment benefit trusts (EBTs) to pay players and other staff.

It is thought that HM Revenue and Customs believe the club misused the scheme and avoided paying significant sums in tax.

The amount HMRC is claiming, including penalties and interest, is believed to be about £49m.

BBC Scotland's business and economy editor, Douglas Fraser, said the legal moves on Monday surrounding administration would give the club "a few days for negotiations with HM Revenue and Customs (HMRC)".

The revenue could stand to lose out on any tax due if Mr Whyte chooses to collapse the company.

Mr Whyte is understood to be the club's main secured creditor via a floating charge over its assets.

This would allow him to pursue other avenues such as receivership or pre-pack administration to satisfy the debts which the club owes him.

These would involve transferring Rangers assets out to another company or companies to satisfy outstanding debts to the floating charge holder and leaving the club behind with the debt.

In such scenarios, it would be likely that Rangers FC - formed in 1873 - would be formally wound up.