The so-called big tax case Rangers facing was "a nuclear missile" heading towards the club, jurors at the trial of Craig Whyte have heard.

The High Court in Glasgow also heard the Ibrox side refused to settle a second tax case because it was hoped Whyte would pick up the bill after he bought the club.

In March 2011, the tax case led to talk about the club entering administration, it was heard, as it was claimed Rangers "could not contemplate" the resulting debt.

Whyte denies a charge of fraud and a second allegation under the Companies Act in connection with his 2011 takeover.

Former Rangers finance director Donald McIntyre was in the witness box for a second day where he was cross-examined by Whyte's QC Donald Findlay.

Mr Findlay put to the 58-year-old the "potential liability" to HMRC was in excess of £50m.

He said: "A nuclear missile heading towards the club in the form of the big tax case... like an Exocet, nothing could be done to stop it."

Mr McIntyre: "Time will tell. Counsel told us that we had a very good chance in the case."

Mr Findlay further described it as a "potentially terminal event" for the club.

The advocate later asked when did Mr McIntyre first knew "the board was discussing the possibility of administration" for Rangers.

Mr McIntyre said he could not be "specific of a date" but the "subject would have cropped up".

Whyte went on to purchase Sir David Murray's controlling stake in the club in May 2011.

Mr Findlay said it appeared the board had discussed administration "several months before the Whyte deal" concluded.

The court went on to hear of a meeting between Rangers directors in March 2011.

Money to be owed to HMRC was one topic, with a number of possible scenarios for the club.

One was again the possibility of Rangers going into administration.

Mr Findlay said: "Rangers could not contemplate paying up that size of debt?"

Mr McIntyre replied: "Yes."

The QC said there also appeared to be a "pious, pie in the sky" approach by some on the board to any liability.

Mr Findlay said: "Since Rangers could not afford to pay, the revenue may go: 'oh well, never mind'?"

Mr McIntyre replied: "No, I am certainly not of that opinion."

It was earlier claimed Sir David Murray had described the Whyte bid for the club as the "only show in town."

The jury previously heard how there had been "not much" interest from others in taking over Rangers.

Mr Findlay put to Mr McIntyre: "Did it become abundantly clear that Murray (Sir David's company) would do virtually anything to secure the deal with Mr Whyte?"

The witness responded: "I would not put it like that. I don't think a deal would have been done under any circumstance."

Mr Findlay added: "A deal was done under any circumstance... Rangers was bought for £1."

Mr McIntyre said: "With commitments and obligations."

Paul Murray, then a Rangers director, was said to have made a proposal to take over weeks before Whyte did but it was described as having a "slim" chance of success.

Whyte is accused of pretending to Sir David Murray and others that "funds were available" to make all stipulated payments.

It is claimed "resources necessary" were available to meet a number of "obligations" including £5m for "the playing squad."

The funds included clearing an £18m bank debt, £2.8m for the "small tax case" liability, a £1.7m health-and-safety liability and £5m for the playing squad.

The trial, before Judge Lady Stacey, continues.