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Dec 4, 2012

Hearts agree settlement

Hearts have agreed a resolution with Her Majesty's Revenue and Customs in a dispute over tax and national insurance contributions.

Hearts will pay £1.5m over a three-year period, with the deal separate to the settlement of a £450,000 bill on Monday which staved off the threat of a winding-up order.

The SPL club had been in dispute with the tax authorities regarding the treatment of players loaned to Lithuanian club Kaunas.

In a statement on the club's official website, Hearts director Sergejus Fedotovas said: "We are satisfied that this resolution provides the club with an opportunity to now move forward with certainty.

"We believe that the payment terms agreed with HMRC allow the club to manage repayments in a way that will not be detrimental to longer-term development of the club."

Hearts are ninth in the SPL and were knocked out of the Scottish Cup by city rivals Hibernian at the weekend.

Information from Press Association was used in this report.

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