Filenews 21 November 2024 - by Eleftheria Paizanou
The state appears willing to put an end to the tolerance it has shown over time to the non-compliance of football clubs – companies with their obligation to repay debts to state departments and services, especially for the payment of their tax debts to the Tax Department.
The unions' debts to this department "climbed" to €35.6 million, with an upward trend.
Fileleftheros reports that the Commissioner of Taxation, Sotiris Markides, has forwarded a new letter to the management of the unions – companies, giving them an ultimatum until the end of 2024, to pay their debts, based on the existing repayment plan.
With the letter, the Commissioner of Taxation calls on football companies and clubs to comply with the provisions of the latest government plan that came into effect in May 2023 and pay their debts. In fact, it warns that for those football clubs that do not comply by the end of December 2024, the Tax Department will proceed with the procedures for taking legal action against them.
The debts of €35.6 million they have been created by football companies and clubs from July 2007 to March 2023. However, new debts created after the new plan were added to this amount...
Will managers get in trouble?
According to tax legislation, both non-payment of income tax and non-payment of VAT are criminal offences.
A competent source told "F" that some of the football clubs, although they proceeded to cut income tax from footballers and other workers, did not pay the amounts cut to the state.
Also, there are cases where they have not paid the prescribed VAT to the state. As we have been told, the two criminal offences, according to the law, even carry prison sentences for the directors of football clubs or companies.
In addition to the troubles that union administrations will have with the law if they do not comply by December, they risk losing the favorable arrangements agreed in the latest instalment payment plan to pay debts. This will mean reinstating the €10 million interest and charges that were put on hold under the latest plan.
The government plan of May 2023 extended the application of its scope, with the inclusion of overdue tax debts of the period 1/4/21 to 31/3/23, without granting additional reliefs in the form of impairment in interest and charges. Tax debts would (should) be paid through 168 instalments. The duration of the project was 14 years. A prerequisite for the granting of these facilities was the non-creation of new debts. Otherwise, those who violated the agreement would be expelled from the plan.
Problem with UEFA criteria
It is worth noting that football clubs may also get into trouble in relation to UEFA's criteria, given the ultimatum given a few months ago by Finance Minister Makis Keravnos, who said that there will be no other plan to repay the debts.
In other words, football companies may face the risk of deducting points from the league table, relegation, a transfer ban and exclusion from European competitions. This was not done in the past, as the competent ministry proceeded to issue an exceptional certificate to the unions for compliance with the debt repayment plan to the state.
Close marking on Members
However, some union officials have been alarmed by the latest letter – warning from the Tax Department and began to put pressure on parties and MPs to persuade them to promote in the plenary of the Parliament for approval the bill submitted by the Ministry of Finance recently, which provides for an increase in betting taxation from 3% on net earnings to 4.5%. so that with the extra revenues the tax debts of the unions will be covered.
When the bill began to be discussed in the parliamentary Finance Committee, the majority of MPs had disagreed with the proposed regulation and called on the relevant ministry to withdraw the text.
The bill is still in the drawers of the House and until recently there was no intention by the parties and the competent committee to resume the debate and bring the legislation to plenary.
However, MPs' phones were set on fire by football officials who invested heavily in the bill. It is worth noting that some MPs from certain party areas, due to the direct or indirect connection they have with certain groups, in turn exert pressure on their parliamentary groups to bring the government proposal back to the forefront.
On 12/12 the meeting convened for the debts by the Superintendent
On December 12, the Commissioner of State Aid Control Stella Michaelidou will finally meet with representatives of the Ministry of Finance, the CFA, the CSO and the National Betting Authority.
Before the meeting, which was convened by the Superintendent, Ms. Michaelidou will seek to have contacts with Finance Minister Makis Keravnos, as well as with other competent officials, so that the state can collect its receipt.
The focus of the meeting will be on the controversial bill, which the Commissioner of State Aid Control had initially argued contained elements leading to incompatible state aid.
Stella Michaelidou, speaking to "F", said that a solution should be found, pointing out that the aim is the collection of debts by the state and not the closure of football clubs. As he said, the state should behave like a private creditor, stressing that the settlement should not be unbalanced with the state.
