von McCeltic » So 28. Okt 2012, 11:30
Hearts face a tax tribunal alleging that the club owe HMRC ÂŁ1.75m in tax dating back to 2005.
The claim dates back to the early days of Vladimir Romaovâs reign at the club when upto a dozen players came in on loan from Kaunas, the Lithuanian side owned by Romanov.
HMRC are claiming that tax on the full salaries should have been paid in the United Kingdom, rather than in Lithuania, where tax rates are lower. Hearts believe the scenario is no different to any routine loan player arrangement, when wages can be subsidised by parent clubs.
The information came to light as the Edinburgh side prepared for a share issue designed to raise ÂŁ1.7m which is remarkably close to the figure being demanded by HMRC.
Hearts have had a number of problems with HMRC in recent times but have so far always been able to settle their bills.
Whether the Hearts issue has similarities with Rangers remains to be seen although on the surface this issue is purely down to the meathod of taxation rather than whether undeclared payments were made outwith those contracts lodged with the SFA and SPL.
Like Rangers Hearts promise to ârobustly defendâ the action with a club statement saying: âHeart of Midlothian plc. are subject to a significant ongoing dispute with HM Revenue & Customs (âHMRCâ) 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 ÂŁ1.75 million (excluding interest and penalties) 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.
âThe 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.â
SFA President Campbell Ogilvie switched to become Hearts Operations Director from Rangers in 2005 while retaining his place as treasurer of the SFA.
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