A Nicosia football club will be facing trial this week over the non-payment of €2.3 million in social insurance contributions, it emerged on Monday.

It is apparently the first such trial to take place.

Daily Politis, who broke the story, said the first hearing in the trial would be held at Nicosia district court on Wednesday. The defendants are expected to enter a not guilty plea.

The football club itself was not named. The defendants are alleged to have broken the law by withholding social insurance contributions as well as contributions relating to other funds such as the redundancy fund and Gesy (national health system).

It’s alleged that the club would deduct these amounts from the pay of employees – like football players and trainers – but would then not transfer the amounts to the government funds in question. Instead, the club kept the money.

The case was initiated by the ministry of labour, responsible for social insurance matters. Sources at the ministry confirmed to the Cyprus Mail the case was going to court.

According to Politis, the specific case involves the largest amount owed in social insurance by a football club. More cases would likely follow.

Where football clubs are concerned, those legally liable are the directors of the company.

Under the relevant law, non-payment of social insurance by an employer or self-employed person constitutes a criminal offence. If found guilty by a court of law, a defendant is liable to a prison sentence of up to a year, or a fine of €3,400, or both.

Repeat offenders are liable to a prison sentence of up to two years, or a fine not exceeding €5,000, or both.

Meantime last week it came out that tax authorities are considering filing criminal cases against clubs for the latter’s failure to meet their tax obligations.

According to press reports, the legal action will take place against clubs who have fallen foul of their debt repayment scheme.

First on the list are Apoel, AEL, Apollon and Anorthosis – who collectively owe €25.6 million. Apoel alone owe €11.6 million.