Filenews 9 September 2024 - by Eleftheria Paizanou
The members of the House Standing Committee on Finance block the bill that increases the percentage of net wages from betting to be paid by the CSO to the CFA and football clubs, from 1.5% to 3%, money that will be used to pay off the clubs' debts to the state.
AKEL calls for the withdrawal of the bill, DIKO argues that the bill will not go ahead, while DISY says they will support the bill provided that the unions pay the debts they already have in the tax. AKEL MP Aristos Damianou called on the government to withdraw the bill as it is unacceptable and constitutes a rape of good administration. AKEL MP Christos Christofides also spoke of carabinate state aid and a bill. DIKO MP and chair of the Finance Committee Christiana Erotokritou noted that the bill will not go ahead, stressing that other taxpayers are not treated in the same way. DISY MP Onourfios Koullas said the bill should be turned into an investment in sports and not debt repayment.
Superintendent's Disclosure
Disclosure by the Commissioner of State Aid Control Stella Michaelidou in Parliament in relation to the latest Debt Repayment Plan of football clubs. During the discussion in the House Committee on Finance of the bill increasing the percentage of net earnings, he expressed some reservations in relation to the Plan.
As he said, the Plan involves elements of a state guarantee and the terms of the European Union, stressing the need to include safeguards there will be a plan for the payment of debts. According to the Superintendent, there have been similar plans in the past, but the result showed that they were being implemented correctly, resulting in the accumulation of debts from football clubs amounting to €35 million. "Through the process of taxation, the resources are state-owned, this is where the elements of evaluation of state aid data begin," he noted. According to Michaelidou, tax settlement in the context of state aid is possible, given that the settlement is made with arguments, pointing out that it will be the best not to be disproportionate.
As Michaelidou said, if a team that went to Europe and received €30 million, it will have to wait 14 years for the state to repay its debts, as provided for in the plan. "The issue of tolerance should be taken into account, adding that "in the EU there were cases with Olympic Airlines instead of taking effective measures or their tolerance was great." In addition, he noted that the 14-year debt repayment period can also be considered state aid, stressing that safeguards should be included. The Superintendent wondered if a creditor would settle with the unions without a financial audit. "There are elements of a state guarantee involved and the terms of EU rules and the question of what safeguards there will be in place to repay them.
It is worth noting that after the latest publication of "F" with which the State gave a new indulgence to the unions giving them a certificate that they comply with the provisions of the last plan, the Office of the Superintendent sent a letter to the Ministry of Finance whether the latest plan contains elements of state aid, but has not yet received a response. In conclusion, the Superintendent said that last December the Ministry of Finance sent her a letter regarding the repayment plan, pointing out that the answer given may involve elements of state aid and include safeguards. Before the Committee, the Superintendent said that the financial statements should be audited and wondered if there is an audit by CMO. He also questioned whether the Tax Department made other arrangements to other citizens.
