Football clubs receive further tax reprieve
Football clubs that owe the state millions in tax have apparently received a new reprieve until the end of April to repay part of their debts, reports said on Tuesday.
The previous deadline set by the tax department expired on March 31.
According to daily Politis, the most tax delinquent clubs – Apoel, AEL, Apollon and Anorthosis – have now secured a small extension, until the end of this month.
Although the tax department has made separate arrangements with each of them, in general the clubs will pay back approximately 50 per cent of their income tax arrears accumulated over the past two years.
The tax arrears for this period of time come to €1.8 million for Apoel, €1.6 million for AEL, €1.3 million for Apollon and €750,000 for Anorthosis.
That works out to a total of €5.3 million. Of this amount, the four clubs in question will reportedly repay about €2.5 million.
Overall, however, the four companies collectively owe €25.6 million. Apoel alone owes €11.6 million to the taxman.
The developments come amid mounting pressure from the tax department and threats of criminal prosecution.
The question now is whether repayment of part of the taxes will be deemed sufficient to keep the wayward clubs inside their debt repayment schedule. The decision rests with the cabinet.
Years ago the government had enrolled the clubs in a special debt schedule based on monthly instalments. Most failed to meet their obligations, leading authorities to issue an ultimatum and threaten imminent legal action.
Citing sources, Politis said that Anorthosis has proposed immediately repaying about €350,000 of the €750,000 it owes. Recently the club was promised by President Nikos Christodoulides a one-time grant of €75,000 on the occasion of its anniversary. Anorthosis have now reportedly proposed that they repay €275,000 plus give back the €75,000 grant – for a total of €350,000.
Apollon has already paid back €150,000 and promised to pay similar amounts in April and in June.
Apoel, by far the biggest offender, has asked for a small extension to repay part of their tax arrears of the last two years. The request for an extension was made because of the change in the club’s board of directors.
In mid-February the football clubs with the largest debts had sat down with the tax commissioner Sotiris Markides.
Reports later said it was agreed there that tax authorities would not press criminal charges until the end of March.
The five clubs had previously met Markides on January 22. They had made a counter-proposal: to immediately pay back to the state one-third of their tax dues, start paying instalments, and in exchange the prior debt repayment deal would be kept in place.
Amid all this, tax authorities have already drafted indictments the four clubs.
According to Politis, the charge sheets include more than 100 individuals.
Under the debt repayment scheme, approved by the cabinet in May 2023, the clubs would repay their tax arrears in 168 monthly instalments, pay back current dues arising after April 1, 2023, and file all necessary tax returns.
Also at stake for the clubs – other than possible indictments – is their participation in lucrative European competitions. Should they somehow manage to meet their minimum obligations toward the debt repayment scheme, they would get the required compliance approval from the finance ministry in May, allowing them to participate in these tournaments.