Hearts will be called before a tax tribunal next month to answer claims that they owe Her Majesty's Revenue and Customs £1.75m in unpaid taxes.
The bill is in relation to arrangements made for players that were loaned to the Tynecastle side from FBK Kaunas, a Lithuanian club sponsored by Hearts owner Vladimir Romanov.
The club indicated the likelihood of facing the case in a brochure, which will be issued to supporters ahead of today's match with Ross County, that outlines details of the £1.79m Hearts hope to raise through a share issue.
It reads: "Heart of Midlothian plc. are subject to a significant ongoing dispute with [HMRC] which, if it ultimately goes against the company, could have a dramatically negative effect.
"Specifically, HMRC has claimed unpaid tax liabilities of circa £1.75m [excluding interest and penalties] in relation to the arrangements between the company and Kaunas in relation to certain players who were loaned to the company by Kaunas.
"The 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."
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