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Hearts FC misses tax deadline

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11th Jun 2013
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Hearts Football Club has been unable to pay all of its tax bill of £100,000 that is due today (11 June). Nick Huber reports.

The Edinburgh club has paid the majority of its tax bill but not the full amount, AccountingWEB understands.

The failure to pay the tax bill will lead to HMRC issuing the club with a winding up order. There will be a further deadline of seven days from the notice of the winding up order being made public.

Hearts face uncertainty with a debt of £25m - £10m of which is due to their parent company, UBIG, which is claiming insolvency, and £15m to Ukio Bankas, which has been officially declared bankrupt, the BBC reported.

The football club met a £450,000 tax bill in December, thanks largely to the generosity of fans.

They have negotiated a repayment plan for a separate tax bill of more than £1.5m following a dispute over loan deals for players, the first instalment of which has been paid, the BBC also reported.

Hearts avoided a potential points deduction when the Scottish Premier League ruled last month that it was not satisfied UBIG had suffered an "insolvency event" during the season just gone.

However, if any club defaults on tax then a player registration embargo is applied until such time as the matter is resolved.

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By Eyrie
11th Jun 2013 20:14

Yet another club that has been guilty of financial doping for years.

Time to introduce the Bundesliga model where clubs have to submit robust financial plans in advance of a new season to be allowed to compete.

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By User deleted
12th Jun 2013 10:25

Anyone else spot the irony?

A football club with cash shortage sponsored by ...

Wonga

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By j.harris
14th Jun 2013 16:18

Really hoping that the introduction of Financial Fair Play will help sort this out for all clubs in England. No better example of a fall from grace than Portsmouth. FA Cup final to consistent away days in front of crowds of 3000. A sorry state of affairs.

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