Filenews 8 January 2025
Fileleftheros reports that indictments are underway against football companies that have accumulated tax debts to the state amounting to €35.5 million. and not only do they not pay their agreed instalments, but they also create new debts after May 2023, when the repayment plan was implemented. Amount: €4.1 million concerns new debts created by some groups.
As "F" is informed, the Commissioner of Taxation Sotiris Markides instructed employees to prepare indictments for the non-compliance of unions – companies with their tax obligations. They mainly concern non-payment of income tax and VAT and non-submission of tax returns. A competent source told "F" that when the indictments are completed, the Tax Department will contact the Legal Service, asking for legal action.
As we have been told, the legal measures will apply to all football companies that do not pay their debts, but it will start with the clubs that have the largest debts. Specifically, the first indictments will be sent to APOEL, AEL, Apollon and Anorthosis. These four clubs owe the tax a total of €25.6 million, i.e. about 3/4 of the total debts to the state.
According to the latest updated data from the Tax Department, APOEL's total tax debts were €11.6 million, AEL's €5 million, Apollon's €4.8 million. and Anorthosis €4.2 million.
The debts of the balances
In the process, indictments will be sent to other football clubs, which have fewer debts to the state but created new debts after the implementation of the installment repayment plan. According to the latest data, OMONOIA Nicosia's tax liabilities are €4.9 million. (did not create new debts after the new plan), Pafos €1.18 million, Ethnikos Achna €1.15 million, Ermis Aradippou €546,000, Doxa Katokopia €508,800 and Aris Limassol €434,400.
It should be noted that four other teams have much smaller debts, while AEK Kition and OMONIA 29th May have no debts. According to information provided by "F", PAFOS has already submitted a request to the Tax Department to repay all the debts it has. In fact, he asked to receive the corresponding discount on interest and charges, as was given to AEK Larnaca when it paid off its debts in the past.
Dark things for managers
A competent source also told "F" that the indictments that will be prepared will be addressed to the directors of football companies, who during their time at the helm did not pay taxes or submit tax returns within the timelines.
There are also cases where some football clubs have cut off income tax from players and their other employees, but have not paid the amounts to the state. Under the law, failure to comply with tax obligations is a criminal offence, which even carries prison sentences.
Once the football clubs are brought to justice, the Tax Department will be able to activate the collection measures at its disposal. The first measure is the placement of a MEMO on the real estate of the associations, until they pay their debts. In fact, the department is ready to go to extremes and activate the last measure, which is the freezing of the bank accounts of football companies, which would cause particular problems in their operation.
The repayment plan does not exist
Under the current circumstances, there will essentially be no debt repayment plan for those unions that have created new tax debts and have not repaid them. The main provision of the plan was that the unions should have paid off their previous debts.
Questions also arise about what will happen with the increase of the betting tax to 5%, paid by terrestrial (agencies) and online betting providers. The relevant bill was approved last month by Parliament and it was decided that part of the proceeds from betting would go to the state to pay the debts of the clubs. It will have to clarify what will happen to revenues generated for clubs that exit the scheme due to non-compliance. Among the favourites will be clubs, such as AEK and Omonia 29 May, that do not owe a cent to the state and will benefit from the additional revenues that will arise from the betting tax.
Problems with UEFA criteria too
In addition to the above problems with the judiciary, clubs that do not rush to repay debts will also get into trouble in relation to UEFA's criteria. Within the month the CFA will have to inform UEFA if the clubs meet the criteria.
As was recently said, the Minister of Finance will not issue an exceptional certificate to the clubs for compliance with the debt repayment plan to the state, something that was done in previous years, as many people were comfortable. Clubs that do not meet UEFA criteria risk being deducted points from the leaderboard, or even relegated, banned from transfers and even banned from European competitions.
