Hearts ‘confident’ tax bill will be paid after latest winding up order

Published on Wednesday 8 February 2012 02:14

Hearts have expressed confidence in their ability to pay a tax bill which has led to another winding up order being petitioned against the club.

The petition was presented to the Court of Session by the Advocate General for Scotland on 27 January and published yesterday, with Her Majesty’s Revenue and Customs [HMRC] giving the Edinburgh club eight days to pay. The sum is understood to be in the region of £150,000. It is part of a larger fee owed by the club to HMRC, the balance of which was paid late last year. Other orders were served in 2009 and 2010.

The club issued a response to the public notice, which appeared in yesterday’s edition of The Scotsman. “The club is aware of the notice placed in a newspaper today relating to an earlier petition presented to the Court of Session,” read the statement. “The club is working to resolve the situation. The club is confident that the relevant matter involving HMRC will be resolved in the very near future and no action as specified in the public notice will take place.”

While the statement was authorised by senior figures at the club, questions remain as to whether Hearts’ parent company, Ubig, will provide the funds to prove such confidence is well placed. Vladimir Romanov, the Hearts owner, has already resolved to stop funding the club.

Hearts’ perilous financial predicament has been highlighted by the delayed payment of player wages in recent months. January was the first time in four months the players received their salaries on time. Hearts avoided unlimited sanctions from the SPL as a result, though only after the club were charged due to some players not receiving their wages until the morning after the deadline imposed. The SPL board sub-committee later decreed that the Tynecastle club had acted in good faith by instructing their bank to make payment the previous day.

The club were thwarted in their attempt to raise significant income during January’s transfer window. Only Eggert Jonsson and Ryan Stevenson left Hearts for fees, which, when combined, are believed to have boosted the club’s finances by over £200,000. But the club lost out on another £80,000 when Marian Kello refused to move to Austria Vienna on the last day of the window. The wage bill has, however, been reduced due to the departures of several squad members. John Sutton has also just agreed a short loan deal with Australian club Central Coast Mariners.

As well as being required to resolve the situation with HMRC, Hearts also need to locate the funds to cover the next wage outlay, which is due to be paid a week tomorrow.

Taken from the Scotsman