The government must decide within days whether to certify that major football clubs are complying with tax payment plans, a decision that could determine their participation in European competitions and trigger severe penalties from UEFA.
The Cyprus Football Association (CFA) will inform UEFA today about clubs’ tax compliance status after several teams failed to pay €5.3 million in income tax and VAT accumulated since May 2023, despite entering government repayment schemes.
Seven clubs including champions Pafos FC, runners-up Aris Limassol, APOEL, Apollon, Anorthosis, AEL and Ethnikos Achna face potential sanctions including exclusion from European competitions and six-point deductions in the new season.
“The punishment, among other things, includes non-participation in European championships and a deduction of 6 points from the new football season,” said Christakis Christofides, vice-president of the CFA’s Criteria Committee, following yesterday’s meeting.
The government faces two options: refuse to issue compliance certificates citing unpaid debts and force the CFA to report non-compliance to UEFA, or grant certificates despite outstanding payments to avoid damaging clubs financially.
Payment status varies among affected clubs. APOEL has paid €700,000 of its €1.8 million debt and pledged another €200,000. Apollon and Anorthosis have each paid approximately 50% of their new obligations, totalling about €1 million combined.
Pafos, Aris and AEL have committed to full payment but await ministerial approval for tax deductions, citing bureaucratic delays.
The Finance Ministry expressed intense dissatisfaction with yesterday’s developments, with some officials viewing the CFA’s stance as blackmailing of the state, according to sources.
Clubs will have five days to appeal any penalties imposed by the CFA before final decisions are communicated to UEFA. The CFA must notify UEFA by May 31 which teams will participate in European competitions.
The impasse stems from disagreement within government over who should decide on clubs’ re-entry to payment schemes.
Finance Minister Makis Keravnos believes the Tax Commissioner should make the decision, whilst the Commissioner maintains the Cabinet, which approved the original scheme in May 2023, must decide.
The CFA received no response yesterday to letters sent to the President, Finance Ministry and Tax Department, despite telephone contact between senior ministry officials and CFA representatives explaining procedural matters.
Sources indicate that if the Tax Commissioner is satisfied with payments made to date and re-admits clubs to the repayment scheme, Minister Keravnos will issue the required certification.
Any club excluded from European competitions would face a three-year ban from continental tournaments upon future qualification.
