Swan Districts face a tax bill of more than $500,000 dating back to their disastrous 2011 season.
New Swans president David Parkinson confirmed a "significant" tax issue but assured members and sponsors that it would be addressed. He pledged higher standards of financial accountability and governance for the club.
"It was basically a lack of governance you could say," Parkinson said.
"It would be less than truthful to say that it wasn't significant.
"That is the bad news. The good news is that once a new team of directors got in we attacked it straight away and came up with a financial plan to knock over half of it, which will happen this time next week.
"Then it is just a matter of working through with the taxation department on how we are going to pay it off.
"We have a financial plan which is satisfying to us and satisfying to the taxation department.
"Basically, claims weren't lodged when they should have been and that caught up with the club."
Swans have ridden a financial roller-coaster for two years.
Former chief executive Brendan Parker departed midway through 2011, ahead of revelations that the club recorded a loss of $376,000.
That figure was amended in September to $806,000 and the club was also fined $25,000 by the WA Football Commission for salary cap declaration breaches, though Swans successfully argued that they hadn't exceeded their salary cap.
Parkinson, 1990 premiership captain Peter Hodyl, former Docker Matt Carr, Peter Snow and accountant Paul Douglas were part of a financial reform ticket at director elections in October last year.
Former president Peter Harvey resigned last week, citing business and family commitments.
Parkinson was elected as his replacement on Saturday. He backed the new administration and CEO Tom Bottrell to navigate the club clear of its financial troubles.
"The members are very happy that there has been a refreshed board," Parkinson said.
Claremont chief executive Todd Shimmon yesterday confirmed the Tigers faced a $17,000 tax bill for exceeding payroll thresholds.
The WAFC was speaking to the tax office on the club's behalf but Shimmon was confident the Tigers would cope with the bill if the issue wasn't resolved.
Basically, claims weren't lodged when they should have been. " David Parkinson