Football clubs failing to repay millions in tax debts face not only legal consequences but also the reinstatement of previously frozen interest payments, according to tax authorities.
Under the debt repayment scheme agreed with the government in May 2023, about €10 million in interest payments had been suspended. However, clubs facing court action and collection measures, including property MEMOs and bank account freezes, will automatically be expelled from the scheme and see their original debt levels reinstated.
The scheme covered tax arrears from April 1, 2021 to March 31, 2023. Clubs failing to meet their obligations will face immediate payment demands for all tax department debts, with additional interest and charges applied.
Cyprus Football Association (CFA) deputy chairman Haris Loizides expressed concern after the tax commissioner confirmed that APOEL, AEL, and Apollon face charges over €25.6 million in tax debts.
Loizides called for respect from the media, stating that “almost all major clubs face problems” and solutions through arrangements should be found with the tax commissioner’s approval.
Under the law, company directors face personal liability, with penalties including fines up to triple the VAT amount owed or imprisonment up to three years.
The tax department can also freeze bank accounts and seize property for debts exceeding €3,000, with property MEMOs applied for amounts over €5,000.
Loizides’s comments drew criticism on social media and in the press, with some interpreting them as an attempt to shield clubs from accountability while showing disrespect to individuals and businesses that pay their taxes regularly.
