Tax Commissioner Soteris Markides has told APOEL, Anorthosis, Apollon and AEL to clear one million euros in new VAT and income tax debts by August 20. If the four do not comply, Markides said, he will start freezing their bank accounts.
Markides went to a CFA meeting last Monday attended by club representatives and told them the Tax Department will make no concessions on the debt repayment scheme, and that he would grant no extension on the deadline. The department will not turn a blind eye to clubs failing to meet their tax obligations, he said.
He made no secret of his irritation that clubs ran up fresh tax debts as soon as the CFA gave them the green light last May, certifying they met UEFA criteria to play in the Cypriot championship and in European competitions.
Ready to move
If the four do not comply, Markides said, he will trigger the Tax Department’s collection measures, starting with freezing the clubs’ bank accounts. If they still fail to pay, he will move to the rest, registering charges (MEMO) against their assets. The department’s collection powers also include sealing business premises, a measure brought in under the tax reform.
Clubs say they will pay
Representatives of the four clubs gave assurances they will settle the new debts by the 20th. They said they will have raised the money the Tax Department is demanding before the deadline runs out, putting them back in compliance.
The four, along with the other clubs in the repayment scheme, are paying their monthly instalments as they fall due. On current instalments they will clear their tax debts in full in 2037. Missing three instalments means immediate removal from the scheme.
Social insurance debts
Some of the 12 football companies that owed the Social Insurance Fund a combined 9.5 million euros are considering applying to join a scheme for regulating overdue debts. Applications close on September 14.
One club is already in the scheme and another has applied. Some have contacted the relevant services asking for further clarification. More clubs are expected to apply after the summer holidays.
