Hearts vow to clear their debts

Hearts have vowed to settle a tax debt on Tuesday after being threatened with administration by Her Majesty's Revenue and Customs. Papers were lodged in the Court of Session on July 29 by the Advocate General for Scotland on behalf of HMRC.Hearts this evening released the following statement on their official website on Monday: "The club has been in discussions with Her Majesty's Revenue and Customs over the payment of an outstanding invoice."Hearts can confirm that payment will be made in full tomorrow."The Notice of Petition for Administration Order, which was issued against Heart of Midlothian PLC under the Insolvency Act 1986, is available on the Companies House website.It is understood no court date was set for a hearing into the matter and the club's payment should prevent further action.The club, who host Tottenham in the Europa League on Thursday, were previously threatened with similar action from HMRC almost exactly two years previously.A petition for 'wind-up' action was lodged against the Edinburgh club in July 2009, which the club claimed came as a surprise as they had a payment schedule in place with HMRC. The club vowed to meet the debt in full.Hearts announced a return to profitability for the first time in 11 years when they revealed their financial results earlier this year. The Edinburgh club announced a profit of £39,000 in the year to July 31, 2010.The profit, which followed a loss of more than £8.5million, came after parent company UBIG, owned by Hearts majority shareholder Vladimir Romanov, invested £7.9million in the club.And a £10million debt for equity plan handing more power to Romanov in return for cutting the debt to around £25million, was approved in November 2010.HMRC, who do not comment on individual cases, are also involved in disputes with Rangers and Sheriff officers last week visited Ibrox amid negotiations.Rangers were hit with a bill of £2.8million earlier this year over a historical matter but are believed to be disputing a fine of around £1.4million relating to the issue.Rangers last week stated they had reached "outline agreement" with HMRC over the issue with talks ongoing.

Source: Team_Talk