A COURT has heard it would be 'odd beyond measure' if Rangers' former players escaped tax for their on-field successes as the battle over the oldco club's multi-million bill went into extra-time.

Julian Ghosh QC, senior counsel for HM Revenue & Customs (HMRC), made the club, which he said also applied to club executives also paid for their performances.

It came in the Court of Session in Edinburgh as the taxman launched an appeal almost a year after it was defeated in the so-called Big Tax Case.

It was defeated over a claim that Rangers were liable for the £26.2m bill for the oldco club's use of EBTs to make payments to players, managers and other staff.

HMRC believes maintains that both a First Tier Tribunal and an Upper Tribunal, chaired by judge Lord Doherty, have erred in the action.

Mr Ghosh claimed at the Court of Session in Edinburgh that Employee Benefit Trusts (EBTs) formed part of their remuneration package. "It was wages and bonuses. This money was earned for work done," he said.

HMRC maintains the effect of previous tax tribunal decisions in the case is that employees can avoid paying income tax by agreeing that payments be made to others of their choosing, rather than getting the money themselves.

But Mr Ghosh said the court was being asked to endorse a situation where an employee said to anyone who paid them for work done, do not pay me but pay another such as my brother or my wife.

He said the scheme used trusts and sub-trusts.

Mr Ghosh, senior counsel in the case said: "The employee would ask that the income and capital of the sub-trust was applied in accordance with his wishes."

It claims in the appeal: "The scheme in this case was established in terms that had effect so that, on appointment of the funds to the individual sub-trusts, the sums in question were 'paid' to the employee."

The use of EBTs relate back to Sir David Murray's time in charge of the Ibrox club before he sold his controlling stake in the club to Craig Whyte for £1 in May 2011.

Rangers were subsequently forced into administration under Mr Whyte's control went into liquidation in February 2012.

A Charles Green-led consortium bought the liquidated assets of the club in June 2012 following the disastrous reign of Whyte.

South African businessman Dave King has since taken control of the club and been installed as chairman after a lengthy battle for the heart and soul of Rangers.

Last year Lord Doherty largely dismissed HMRC's appeal had brought to an upper tribunal in the 'Big Tax Case,' although he sent aspects of the case back to the first tier tribunal.

HMRC argued the payments should be taxable but Sir David's International Holdings argued they were loans and therefore exempt.

The club's fans believe the Big Tax Case was the reason for the club's sale to Whyte and subsequent woes on and off the park, that saw Rangers relegated to the third division.

The latest stage of the case at the Court of Session is before the Lord Justice Clerk, Lord Carloway, sitting with Lord Menzies and Lord Drummond Young.

Although the hearing is set down to last four days, the case may take years to resolve if they reject it, and HMRC chooses to appeal to the UK Supreme Court.