President Nikos Christodoulides has thrown his support behind the tax department’s efforts to collect 35.6 million euros in unpaid taxes from football clubs and prosecute those refusing to pay, sources told philenews.
The president has instructed the Tax Department to strictly enforce tax legislation despite mounting pressure to show leniency, according to government sources.
While the administration wishes to avoid club closures, it will only accommodate those demonstrating genuine willingness to settle their debts.
The Tax Department is preparing criminal charges against club directors, presidents and legal representatives for non-compliance with tax obligations.
Four major clubs – APOEL, AEL, Apollon and Anorthosis – account for 25.6 million euros, roughly three-quarters of total outstanding debts.
“The presidency directly supports efforts by the relevant department, as the historical tolerance must end”, a senior official told philenews, speaking on condition of anonymity. “The government wants to collect what it’s owed and see clubs finally behave like the majority of taxpayers”.
Tax Commissioner Sotiris Markides assured there would be no discrimination in enforcing tax compliance and justice. The criminal prosecutions will cover the period from July 2007 to March 2023, following previous debt write-offs through government assistance schemes.
The Ministry of Finance has signalled it will not revise the existing repayment scheme, under which some clubs increased rather than decreased their debts by 4.1 million euros.
The Cyprus Football Players’ Association expressed serious concern over clubs’ non-compliance, with executive chairman Spyros Neofitides criticising the Cyprus Football Association for allegedly enabling tax avoidance through inadequate oversight.
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