Labour Minister Marinos Moussiouttas has urged football clubs to apply to join a scheme settling overdue Social Insurance Fund contributions. Just 25 days remain before the deadline closes on September 14.
Applications opened last May. According to information revealed by philenews a few weeks ago, 12 football clubs and companies owed a combined €9.5 million in contributions to the Social Insurance Fund, with the largest share of that debt, €9.32 million, owed by five clubs.
The five clubs with the largest debts owe: €5.84 million, €1.4 million, €949,400, €783,500, and €338,300 respectively.
‘We must be law-abiding’
Two football clubs are currently enrolled in an overdue-debt scheme. One applied under the latest scheme, which has been in effect since May 15, while the other is in a settlement arrangement from a previous government scheme introduced during the Covid-19 pandemic.
Moussiouttas said everyone has an obligation to pay social insurance contributions and to be consistent and law-abiding. He called on football clubs, as well as other individuals and companies, to apply to join the overdue-contributions scheme.
Those who join can repay their debts in 54 equal instalments, and those who pay off their debt earlier benefit from a corresponding reduction in the additional charge, which can reach as much as 27%. The minister said this reduction is conditional on debtors also keeping up their current payment obligations.
He explained that someone who decides to settle their overdue debt in 27 instalments rather than 54 qualifies for a discount on the surcharge. That surcharge stands at 3% a month until 2027. He added that paying in half the instalments would remove half of the existing surcharge from the debt.
Avoiding legal action
Clubs that join the new scheme are shielded from judicial measures, while any criminal prosecutions already filed against them, along with imprisonment or garnishee orders, are suspended. Some administrative officials of football clubs, as well as other legal entities, have already been brought before the courts. Joining the new scheme would allow them to avoid further legal trouble.
Tax debts
Among the five clubs with the largest debts to the Social Insurance Fund, some, including APOEL, Apollon, Anorthosis and AEL, have also built up an additional €1 million in debt to the Tax Department, relating to income tax and VAT. Half of this new tax debt has already been paid.
The deadline the Tax Department set for these clubs to settle technically expires today, but following a request from the debtors, they will be given a few weeks’ extension to comply.
Scheme totals
The total amount of overdue Social Insurance Fund debt, owed not just by football clubs but by dozens of other debtors, stands at €245 million. So far, around 1,500 to 1,600 applications have been submitted, with the Labour Minister indicating a similar scheme may not be offered again soon. The minimum monthly instalment is €25 for debts up to €500, €50 for debts between €501 and €1,000, and €75 for debts of €1,001 or more. This is the third such scheme the state has run to recover overdue Social Insurance Fund contributions.
Through the previous two schemes, the state recovered around €100 million out of a total €225 million owed. Of the 10,900 debtors initially enrolled in those two schemes, more than 60% were later removed for failing to meet their commitments. Currently, 395 debtors are enrolled in the latest scheme.
