Next Game

Hibernian v Hearts

Sunday, 26 October 2014, 12:15

Scots Champ

Last Game

Hearts 5 - 1 Dumbarton

Saturday, 18 October 2014, 15:00

Scots Champ

Hearts handed major tax bill

Hearts' financial plight could be worsened next month as they are facing a tax demand of £1.75million which could have serious consequences for the Scottish Premier League side.

Last Updated: 27/10/12 at 12:16 Post Comment

Hearts: Facing huge tax bill

Hearts: Facing huge tax bill

More of the games that matter

2 years free Sky Broadband Unlimited for Sky Sports customers

The Edinburgh club have vowed to 'robustly defend' their stance against Her Majesty's Revenue and Customs next month when a tax tribunal reviews the case which was revealed in their share issue brochure.

The dispute relates to a loan agreement for a number of players between Hearts and Lithuanian club Kaunas, who were then run by Vladimir Romanov, the Hearts majority shareholder since 2005.

But Hearts insist the situation was no different to any other loan, where parent clubs often meet wage demands.

The Hearts share issue brochure states: "Heart of Midlothian plc are subject to a significant ongoing dispute with HM Revenue and Customs which, if it ultimately goes against the company, could have a dramatically negative effect on the company.

"Specifically, HMRC has claimed unpaid tax liabilities of circa £1.75 million in relation to the arrangements between the company and Kaunas FC in relation to certain players who were loaned to the company by Kaunas FC.

"The directors are attempting to robustly defend those claims but the burden of proof is on the company and the tax will be payable unless the company is successful in challenging the claims."

This is the latest financial issue for the club to contend with as the SPL placed Hearts under a fresh transfer embargo last week after players and staff were not paid on time for a second successive month.

More of the games that matter

2 years free Sky Broadband Unlimited for Sky Sports customers

Related News

Most Commented

Readers' Comments

B

alotelli would've scored if the goals height was 3 times higher too...

footyfan52
Rodgers defends Balotelli

A

s if storey would ever get invited on a stag do

dooby
Does Wenger Know He's To Blame?

I

disagree. We sit here in our ivory towers looking down our noses at people we perceive tio be thick, but if Harry Redknapp and Tim Sherwood can do it, frankly, anyone can.........

HarryBoulton
Roy: Rooney can become manager

Footer 365

Government reveal plans aimed at making it easier for fans to run football clubs

The Government has revealed plans to establish a group of experts aimed at making it easier for fans to run football clubs.

Louis van Gaal felt individual errors spoiled a good display from Manchester United in draw at West Brom

Louis van Gaal felt that Manchester United produced their 'best match of the season', despite the 2-2 draw at West Brom.

Premier League: QPR forward Adel Taarabt criticises Harry Redknapp over claims he is unfit

QPR forward Adel Taarabt has hit back at manager Harry Redknapp over claims that he is overweight and unfit to play.

Mail Box

Reimbursing Fans? How Patronising...

It's something of a return to form for the mailbox with mails on Southampton (Liverpool fans are cynical), the gorgeous Graziano Pelle, Arsenal, Spurs and more...

Let's Face It, Liverpool Were Utter Dross

It's a reactive Monday morning Mailbox. Liverpool fans are getting pretty sodding worried, whilst we have the latest on the Southampton CRISIS. Plus, well done Michael Oliver...

© 2014 British Sky Broadcasting Ltd. All Rights Reserved A Sky Sports Digital Media property