Matthew Smith, representing HMRC, told Mrs Registrar Derrett that the club owed around £1.9million and were "robbing Peter to pay Paul" in order to stay afloat.
Elaine Palser, representing Cardiff, said a "third party" investor would be providing the club with £6million in funds and the tax debts would be paid.
She said the company was not insolvent and had substantial assets including £30million worth of players and the problems had been caused by "temporary cash flow difficulties".
Mrs Registrar Derrett granted the club 56 days to make a full and final settlement with HMRC.
Source: Team Talk
Source: Team Talk