CRAIG Whyte is at the centre of another row after it appeared that the company which ultimately owns Rangers was created when he was banned from starting a new firm in the UK.

The embattled Rangers chairman was blocked from acting as a director or forming a company for seven years from 2000 onwards.

However, the Sunday Herald has established that Whyte's Liberty Capital Limited, incorporated in the British Virgin Isles (BVI) tax haven, had major stakes in UK firms before the expiry of the tycoon's ban. The firm offered liquidation and insolvency services from a Glasgow telephone number when Whyte's disqualification was live.

A spokeswoman for the Insolvency Service said a banned individual could start a firm in the BVI as it was outside the jurisdiction of UK company law. A business created in these circumstances can operate legally in the UK.

Former Ibrox director Paul Murray said he wanted an inquiry into Whyte's takeover to include a focus on Liberty Capital.

Rangers FC was this week put into administration less than a year after Whyte's takeover.

Although Whyte reportedly suggested a potential £75 million HMRC liability was the driver behind the seismic move, at a court hearing on Tuesday, counsel for HMRC stated the club had not passed on up to £9m in tax deducted from staff wages.

Fans want to know the whereabouts of £24.4 million paid by finance company Ticketus for season tickets.

Strathclyde Police detectives are now probing aspects of Whyte's takeover, while the Scottish Football Association (SFA) is also investigating aspects of Whyte's stewardship of the club.

The Sunday Herald can reveal that Whyte is now facing questions about the BVI firm at the centre of his business empire.

Last May, Whyte assumed control of Rangers after his Wavetower company acquired an 85.3% shareholding in the club. Wavetower then changed its name to The Rangers FC Group Ltd, which is owned by Whyte's Liberty Capital Ltd.

LCL is based at a PO box in the BVI. The tax haven guarantees privacy and has long been at the centre of global anger over tax avoidance.

However, it is the genesis of the company that is now under scrutiny.

In a circular from the Rangers FC Group to the club's shareholders, the firm stated Whyte was the "founder and chief executive of Liberty Capital Limited". No further details of the firm, other than it having investments across the world, were supplied.

A BBC investigation revealed Whyte was banned as a director in the UK for seven years over the conduct of his firm, Vital Holdings.

The ban blocked him being an insolvency practitioner and stopped him taking part in the promotion, "formation" or management of a firm.

The Insolvency Service says the disqualification ended on June 13, 2007. But documents obtained by this newspaper show Whyte's Liberty Capital Ltd was commercially active before the end of his ban.

An annual return shows LCL held 700 shares in related firm Liberty Corporate in May 2007, and disposed of 300 shares seven months earlier.

The incorporation documents for Tixway UK, dated January 2007, reveal this firm's sole subscriber was LCL, which gave its UK postal address as Castle Grant, Whyte's home in Grantown-on-Spey.

In August 2006, nine months before Whyte's disqualification ended, similarly-named Tix Ltd named LCL as its sole subscriber.

All these company filings demonstrate that LCL, which Whyte is said to have founded, was created before the businessman's ban on starting a new company expired.

LCL also has a digital footprint which shows it was active prior to the end of Whyte's disqualification.

The domain name for the firm's website was registered in October 2005. The registrant's address was given as "Liberty Capital" at 65 Bath Street in Glasgow.

Archived versions of the firm's web pages show LCL was offering its services while Whyte's sanction was in place.

A screen-grab of the website from December 5 2006, months before the ban ended, revealed LCL offering advice on "insolvency", "receivership" and "liquidation".

The firm's website also flagged up a service for "CVA", otherwise known as Company Voluntary Arrangements.

Coincidentally, CVA has been cited by Rangers as the preferred route out of the Glasgow club's difficulties.

The web-grab also shows a news feed containing summaries of stories from 2006, with headlines such as "Scottish corporate failures rise by 17%".

LCL offered expertise on debt renegotiation and creditors, adding: "We buy distressed companies."

A telephone number for the Bath Street office is provided, next to a sales pitch: "Contact us now - for a confidential chat to discuss your specific situation."

Acting as a director of a UK firm while banned is criminal offence. However, Whyte's ban applied only in the UK and no law was broken.

A person banned from being a director or forming a company in the UK can start a firm overseas. It can then promote financial services in the UK.

Murray, who believes the club should be rescued from Whyte, said: "There has to be a full inquiry by the Insolvency Service into all aspects of the takeover, including Liberty Capital, the funding structure, and the takeover document to shareholders."

He said the former Independent Board Committee, set up to scrutinise the deal, had concerns about the Whyte takeover: "In the end, there were a number on concerns about the takeover. One was about the lack of visibility of Liberty Capital. The question was asked of Craig Whyte about Liberty Capital, and he said that everything was properly funded and that he had 100% ownership."

Stephen Smith, the former chairman of the Rangers Supporters Trust, said previous owner Sir David Murray must take responsibility for the club's difficulties, but said: "If Craig Whyte is serious about Rangers, he will answer questions about the club's ownership. If it is legal and legitimate, the fans will understand why this sort of company is used, but the conclusion to be drawn is that there is something to hide.

"He should agree to speak privately to fans, who could sign non-disclosure agreements if he has concerns about commercial confidentiality. This could reassure fans that ultimately the club is not owned by a parasitic shark."

Richard Murphy, founder of the Tax Justice Network, said: "The BVI is one of the most notorious tax havens. It is incredibly secretive: there's no tax, and no accountability. If you don't want tax or regulation, and you don't want the world to know - about your company, go to the BVI.

He added: "There are 23,000 people in the BVI and, we think, 800,000 companies. Not even the BVI really knows how many firms are there."

Labour MP Brian Donohoe said: "I believe that at some point other parts of Craig Whyte's business should be investigated, but now is the time to focus on how we move out of administration onto the other side. I just don't think Craig Whyte realised the focus there would be on his background when he took over."

A spokesman for Craig Whyte declined to give the date of Liberty Capital's formation. He said: "Mr Whyte was not a UK resident when Liberty Capital was formed. There was no restriction on his forming and directing a company anywhere else in the world.

"Liberty Capital was a shareholder in the companies mentioned. He did not act as a director or shadow director of any UK company during the period of the ban."