Hearts deny share issue cash will be used to pay HMRC tax bill

By GRAHAM BEAN
Published on 01/11/2012 10:21

HEARTS last night claimed that none of the money raised in their share issue will be used to pay off a potential tax bill.

The club are in dispute with Her Majesty’s Revenue and 
Customs which claims it is owed £1.75 million (plus interest and penalties) in unpaid taxes relating to players loaned to Hearts from Kaunas from 2005.

Hearts, who say they will vigorously contest the bill, revealed the tax issue last week when they published a share document brochure offering supporters the chance to buy a ten per cent stake in the club.

The Tynecastle side hope the share issue will raise £1.79m, prompting speculation that money raised would be used to pay the potential tax bill.

Hearts sought to quash such theories in a statement issued last night. It read: “The club has been made aware of some suggestions that any monies raised [by the share issue] would be diverted towards any potential settlement relating the current ongoing dispute with HMRC as outlined in the Risk Factors 
section of the brochure.

“However, all the revenues raised from the supporters will be directed into two areas as stated, namely, ongoing working capital requirements and youth development.”

Sergejus Fedotovas, the Hearts director, added: “I stated at the weekend that the matter of the potential HMRC liability would be dealt with separately and outside of this current share issue. I have noted some comments that might not be the case but I can reassure all supporters that their money with be going to the club and not to cover any potential liability in relation to this matter.

“I would also reiterate that we will be defending this matter and will do everything in our power to secure a positive outcome for the club.”