The Tax Department is prepared to freeze bank accounts and place encumbrances (MEMO) on the assets of football clubs that fail to settle their outstanding tax debts. Football clubs have until the end of the year to pay €4.1 million in overdue taxes, incurred under a repayment scheme implemented in May 2023.
Delayed Payments and Non-Compliance
The overdue amounts stem from missed installments under the 18-month scheme. While some clubs have made partial payments, others have contributed significantly less than agreed or failed to pay entirely. In some cases, clubs deducted income tax from players and employees but did not remit these amounts to the state. Additionally, unpaid VAT remains an issue for several clubs.
Failure to pay these obligations jeopardizes their participation in the scheme, which covers a total of €35.5 million in tax debts. Clubs must adhere to key conditions, including the timely payment of monthly installments, immediate settlement of new debts incurred since April 2023, and the submission of all required tax declarations.
Enforcement Measures
The Tax Department has been employing enforcement measures such as asset encumbrances (MEMO) and garnishment of bank accounts since 2014. These actions, permitted by law without a court order, enable the authorities to secure debts by placing liens on real estate or freezing bank accounts.
Tax Commissioner Soteris Markides issued a final ultimatum to non-compliant clubs, warning that their inclusion in the repayment scheme will be revoked if they fail to comply by year-end. Such revocation would restore the full amount of their original debt and trigger legal and collection actions.
Legal Steps and Political Pressure
If debts remain unsettled, the Tax Department plans to forward the cases to the Legal Service on January 15 for further instructions from the Attorney General. Meanwhile, some club officials are lobbying for political intervention to revise the terms of the repayment scheme, hoping to alleviate the financial strain on their organizations.
As the deadline approaches, the situation underscores the growing tension between enforcement of tax laws and the financial challenges facing football clubs across the country.
