5 TEAMS HAVE STARTED ACCUMULATING NEW TAX DEBTS - ULTIMATUM THEY RECEIVED - Filenews 1/8
Some football clubs in the First Division have started to make mistakes regarding the commitments they made to the state, as shortly before the start of the Cyprus championship they are faced with the activation of strict collection measures by the Tax Department.
After last year’s ultimatum from the tax authorities, all football clubs/companies are under strict monitoring. During the audits, it was found that some football companies began to accumulate new debts to the Tax Department. They may have been in compliance with their old obligations until May, consistently paying the monthly instalments in the plan for regulating their tax debts, however, they created new debts to the Tax Department.
According to information from F, 4 or 5 clubs/companies that just got the green light last May from the Cyprus Football Federation (CFF) and specifically the certification that they meet UEFA’s criteria to participate normally in the Cypriot championship and in European competitions, began to create new tax debts.
As F is informed, clubs, including APOEL, Anorthosis, Apollon and AEL, despite having paid the instalments for the overdue debts normally, created new tax debts, which range in total around €1 million. As we were told, the new debts concern VAT and Income Tax.
Strict letter from the Tax Inspector
As soon as it was discovered that clubs/companies were starting to go astray, the Tax Inspector, Sotiris Markidis, sent a strict letter to the football teams, giving them an ultimatum until August 20 to pay off their new tax debts.
As Fi s informed, the Inspector in his letter warns the teams that, in the event that they do not comply with their obligations and do not pay by the end of the schedule, the Department will proceed to freeze the clubs’ bank accounts.
Based on the legislation, the Tax Department may freeze the amount of the debts from the teams’ accounts.
It is recalled that last year these clubs were briefly removed from the debt repayment plan, but then they returned, after paying part of the debts and in the process paying their instalments normally.
A competent source told F that the situation is manageable in relation to the new debts created by football teams, however, he stated that the state is not going to forgive anyone and will not let the clubs pile up debts.
In fact, he told us that on August 21, the law will be applied to any teams that do not pay the new debts.
Other measures in the framework
In addition to freezing bank accounts, the competent authority has the ability to proceed with placing MEMOs on the real estate and sealing the teams' premises. It is recalled that, based on the 2023 plan and the arrangements made, all clubs will fully pay their taxes by 2037, although some of them have already done so. Last year, the plan was revised and teams that have tax debts to pay will have to pay another 132 monthly instalments.
