The coming days will be crucial for five major football clubs in Cyprus, which collectively owe €4.5 million to the Tax Department. These debts are remnants from the past and should have been settled under the 2023 tax repayment scheme.

According to information obtained by Brief from sources familiar with the matter, the government has been reviewing various scenarios in light of the latest developments. As indicated, definitive decisions could be made within May.

A proposal from the Ministry of Finance on this pressing issue is reportedly in the works and is expected to be submitted for approval in an upcoming Cabinet meeting.

Brief has learned that nearly all of the five sports clubs under the Ministry of Finance’s scrutiny have responded, with relevant sources stating they have paid a substantial portion of their outstanding tax obligations.

The affected clubs are APOEL, Anorthosis, Apollon, AEL, and Ethnikos Achna.

As previously reported, APOEL has submitted a cheque for €700,000 to the Tax Department and is expected to pay an additional €200,000 by the end of June.

With these payments, APOEL will have covered approximately 48% of its total outstanding debt to the Income Tax Department.

If the Nicosia-based club is reintegrated into the existing tax debt repayment scheme, both the amount and the repayment schedule of its past obligations will be redefined.

This approach is expected to apply uniformly to the other football clubs, with no deviation from the terms of the agreement once it is approved by the Council of Ministers.

It is worth noting that, despite challenges, all five clubs are managing—either easily or with difficulty—to meet their current obligations to state funds.

Deliberations within the Presidential Palace and the Ministry of Finance are focused on the potential reintegration of the five clubs into the 2023 staged repayment scheme for tax arrears.

The argument being made is that all five affected sports clubs have paid off more than 50% of their total tax debt to the competent department.

What the football clubs are now eagerly awaiting is a political decision.

Once the Ministry of Finance finalizes its proposal, it is expected to be presented for approval during one of the next Cabinet meetings.

A source from the Presidency contacted by Brief declined to offer specific details, stating only that “the matter concerns the President, who is awaiting relevant data.”

However, a source from the Ministry of Finance told Brief that, since none of the five football clubs will be participating in European competitions, time constraints may be less pressing.

The issue, which has affected the credibility of Cypriot football for months, is currently being handled by Finance Ministry Director-General A. Zachariadis and Tax Commissioner S. Markides.

“If there is sufficient compliance within a legal framework and in line with practices followed in similar cases, the clubs may be allowed to continue under the existing scheme,” the Finance Ministry source noted.

The government is also considering the possibility of waiving interest on the clubs’ old debts.

Additionally, two other clubs—Pafos FC and Aris Limassol—have committed to settling all their current tax obligations by the end of June.