Hearts assure fans over shares
Hearts have moved to assure supporters that money raised by a share offer will not be used in any settlement with HMRC in a tax dispute.
The Edinburgh club launched a share issue last week, making more than 16 million shares available to supporters at 11p per share in a bid to raise £1.79million, or 10 per cent of the club.
The tax dispute was revealed in the share issue brochure, which stated that Her Majesty's Revenue and Customs has claimed unpaid tax liabilities in the region of £1.75million.
At the centre of the dispute is the loan agreement for a number of players between Hearts and Lithuanian club Kaunas, who were then run by Vladimir Romanov, the Jambos majority shareholder since 2005.
Hearts director Sergejus Fedotovas warned fans that the club faces dramatic cutbacks if they do not buy into the new share issue.
However, he has stressed that all the revenues raised will be directed into ongoing working capital requirements and youth development.
Fedotovas told the club's website: "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 will 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.
"We are being totally transparent with supporters but it would be entirely wrong to suggest this share offer isn't for anything else other than what we state is for."