THE seven year legal battle over the so-called Rangers oldco 'Big Tax Case' hax finally reached what is expected to be the final day.

And you can watch the proceedings here direct from the highest appeal court in the UK, live.  Proceedings are due to start a 10am.

The challenge by oldco liquidators BDO over a Court of Session ruling that Rangers' use of Employee Benefit Trusts (EBTs) broke tax rules is being heard in the Supreme Court.

And Friday is expected to be the final day of the case, before the judges deliberate on who has finally won the argument.

BDO are appealing against the decision that £47.65m in 'loans' to more than 80 players and staff in EBTs between 2001 and 2010 for the benefit of their families were actually disguised salary payments.

The taxman won last year's Court of Session argument that the payments were wages and therefore subject to income tax.

But BDO is arguing that the payments were loans, and therefore not subject to PAYE.

The Supreme Court is examining whether in order for a payment to constitute wages for tax purposes, it is sufficient that it was “derived from” work done by a particular employee and/or it “it formed part of the employee’s employment package”.

It is also looking at whether the powers which a player or senior staff held as a 'protector' of a subtrust through which payments were made were "unreservedly" for the employee and therefore taxable wages.

Glasgow Times:

Justices sitting in the case are Lord Neuberger, Lady Hale, Lord Carnwath Lord Reed, and Lord Hodge.

The big tax case decision brought the debate over "tainted titles" into the public arena with some calling for the club to be stripped of titles and competitions won in the years the EBTs were used claiming Rangers had obtained an unfair sporting advantage.

It also has a major bearing on the amount of money given to creditors from the liquidation of oldco, The Rangers Football Club Plc.

Many believe the threat of the mere threat of the potentially crippling tax case led to the bank insisting the club debts of £18 million were cleared, resulting in its sale, a subsequent liquidation, and the decision to admit Rangers into the bottom tier of the Scottish league ladder.

Liquidators have previously confirmed that £72m of the £94.4m owed to Her Majesty’s Revenue and Customs (HRMC) relies on the taxman's claim that Rangers oldco was liable for its use of EBTs.

Rangers used the scheme from 2001 until 2010 to give millions of pounds of tax-free loans to players and other staff for the benefit of their families.

During the seven-year legal case, former Rangers owner Sir David Murray had twice successfully argued at tax tribunals that they were loans and therefore exempt.

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But in November, last year Court of Session judges, Lord Carloway, sitting with Lord Menzies and Lord Drummond Young ruled in favour of the taxman saying that if income was derived from a member of staff's services, in their capacity as an employee, it was an emolument or earnings and "thus assessable to income tax".

That meant the taxman, in one of the biggest tax claims it has ever pursued, won its claim Rangers oldco were liable for a £46.2 million bill over the use of EBTs.

After the judgement last year the Scottish Professional Football League held an emergency meeting at Hampden Park to discuss whether it means sporting sanctions were either justified or workable.

BDO were then granted permission to go to the UK Supreme Court following a hearing at Edinburgh's Court of Session on March 7, putting the question of any penatlies on the back burner.

Lord Carloway, the Lord Justice Clerk, said the judges had allowed the case to go to the Supreme Court because of the implications that it had for similar cases.

HMRC are thought to be pursuing a number of football clubs over claims that they also used employee benefit trusts inappropriately.

A group of Murray firms including parent company Murray Group Holdings Ltd, had originally defended the claims, however the courts have been told they have since gone into liquidation leaving BDO and the Rangers oldco as the only challengers.