Rangers FC have lodged court papers declaring their intention to go into imminent administration.

The Ibrox club lodged the notice in Edinburgh at lunchtime. They now have five days in which to formally declare that administrators have taken over the running of the club.

Solicitors lodged the papers with the Court of Session on behalf of the club's directors. The court confirmed papers confirming the club's "intention to appoint an administrator".

Rangers FC are currently awaiting the result of a 49m pounds tax case with HM Revenue and Customs in relation to the club's use of Employee Benefits Trusts to pay players and staff.

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

The tribunal verdict is imminent but it appears that the Ibrox club have pre-empted any decision.

If Rangers are formally put into administration the club faces an immediate and automatic 10-point penalty from the SPL.

That would place them 14 points behind first-placed Celtic in the race for the championship with only 12 games to play, and virtually preclude any chance of the Ibrox team making it four titles in a row.

Mr Whyte, who bought Murray's shares for £1 and pledged to pay off £18 million of debt to Lloyds Banking Group, has seen his short tenure shrouded in controversy.

He had admitted securing funds of about 20 million pounds from the company Ticketus in a deal over future season ticket sales.

Today, in a statement issued by the club, Mr Whyte continued to point to decisions made before he took over as the ultimate causes of the action.

He said: "It is extremely disappointing the club finds itself in this position but decisions have to be taken to safeguard the long-term survival and prosperity of the club both on and off the field.

"The harsh reality is that this moment has been a long time coming for Rangers and its roots lie in decisions taken many years ago. If we do not take action now the consequences and the risks to the club are too great.

"In addition to the HMRC issues, it has been abundantly clear to me the club faces serious structural and financial issues which will continue unless they are addressed.

"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.

"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.

"Whilst it appears that a consensual restructuring looks unlikely outside of a formal insolvency procedure, the above steps, if agreement cannot be reached with HMRC, will bring an end to the legacy threat of closure and will provide stability required to enable the required investment to be made into the future of the club.

"I can, however, reassure Rangers supporters that the club will continue and can emerge as a stronger and financially fitter organisation that will compete at the levels of competition our fans have come to expect."

Rangers Supporters Assembly president Andy Kerr said the news was perhaps expected but no less devastating.

"I am shellshocked," he said. "Every message I have had on my mobile has mentioned how sad it is.

"Some of us fans had expected that we might face this day but that it has happened so quickly has been shocking.

"It is devastating and it leaves us with more questions than answers. I wonder what the trigger was? People want to know what it means.

"How quickly can we get out of the situation? Where do we start with the debts and playing squad? There are around 200 employees at Ibrox, what will happen to them?"

Mr Kerr is hoping that administration is the worst fate that will befall the Govan club.

"I always believed that liquidation would be the worst-case scenario," he said. "If it is all going down the swanny then the ramifications are horrendous."

An SPL spokesman has confirmed that a 10-point deduction and a transfer embargo would only be put in place when administration was confirmed.

The spokesman said: "At this point in time Rangers are not in administration and we await developments.

"The instant that they are technically in administration there will be an automatic 10-point deduction and, perhaps of less relevance, an embargo on player registrations.

"If administration is confirmed, as we have done previously, we would be looking to work with the administrators and would be looking for a very early meeting."

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 of the club.

Mr Johnston said: "Rangers' stakeholders are now demanding full transparency.

"I have had numerous approaches following the recent revelations in the press about the acquisition of Rangers Football Club and the use of future season ticket money.

"I am not in a position to answer all the questions put to me but I do recognise the issue is causing much concern.

"I believe this is a prevalent view amongst Rangers' stakeholders who are now demanding full transparency about the funding of the acquisition of the club, its current financial status, and most importantly, the way forward."