When Finance Minister Makis Keravnos announced the scandalous plan by which the state would raise the betting tax and use the extra revenue to pay off the tax debts of football clubs he was probably under the illusion that a 20-year problem would be solved. It was a case of the end justifying the means and he was prepared to take the criticism his proposal, which was voted into law last December by a small majority, would inevitably provoke.

In effect, the state would be rewarding football clubs that broke the law by systematically failing to pay their tax dues to the state and building up debts of some €35 million. It was an outrageous decision considering individuals end up in prison for not paying tax dues much smaller than those of the clubs or not honouring the repayment schemes agreed with the state. For the football clubs there have been five repayment schemes in the last 20 years – the last one in May 2023 – and most clubs have ignored them, without legal action being taken against any of them or the scheme being terminated as happens in all other cases.

Keravnos set one condition for the taxpayer bailout of the indebted clubs. They had to settle all unpaid debts of the May 2023 scheme, which amounted to €4.1m by the end of 2024 to be eligible. They failed to do so and Tax Commissioner Sotiris Markides ordered tax officials to prepare the documentation for the prosecution of the clubs. Soon after, it was reported that President Nikos Christodoulides had called the tax commissioner and given him his full backing. A few days later, however, after Apoel fans turned on the government Keravnos backpedalled, suggesting there was still time for the clubs to make the payments.

Meanwhile, the bosses of the clubs with the biggest debts demanded a meeting with Christodoulides, which the president refused to grant, so a meeting was arranged with the tax commissioner. The club bosses of Apoel, Anorthosis, Apollonas, Ael and Achna said they were prepared to pay half the amount due by the end of 2024, as if they were in a position to set payment terms. That was what reports said, but at Wednesday’s meeting with Markides, they offered to make a downpayment of €500,000 and follow up with some more unspecified payments over the next three months. They also demanded that they were included in the taxpayer bailout scheme, without full payment of the €4.1m set as a condition by the government.  

Only in our peculiar country would serial tax offenders believe they have the right to dictate to the authorities what part of their long overdue tax debts they are prepared to pay, as if they would be doing the state a favour. The years of impunity granted by successive governments have fed the arrogance of these lawbreakers, who believe, with ample justification, that the law does not apply to them and that they are entitled to special treatment by the state. Sadly, nothing this government has done so far would suggest otherwise, despite the government spokesman’s daily assurances that the law treats everyone in the same way and that it is being fully enforced in the case of football clubs.

This is an example of hollow rhetoric. Does the tax department engage in negotiations with any company owing the state millions and accept the payment terms it proposes? Does the government draft new repayment schemes for companies that have snubbed previous repayment schemes? Does it impose tax hikes and use the extra revenue to pay off the tax debts of businesses refusing to pay their tax dues? The government’s rhetoric bears no relation to its actions. Not only has it given scandalous preferential treatment to the clubs, it is now considering even greater preferential treatment because the clubs are demanding it. According to the latest reports, the tax department and the government will make a decision on the absurd counter-offer (paying 12.5 per cent of €4.1m the government demanded) by the lawbreakers in the next few days.

The club bosses are now calling the shots, exploiting the government’s weakness and reluctance to carry out its threats for fear of alienating thousands of club supporters. And they have the audacity to throw the original offer back in the face of the government and demand a radically better arrangement, as reward for their contempt for law. Will the government accept this public humiliation by a bunch of arrogant and entitled lawbreakers? Will it give in to them and prove that the rule of law exists only in the rhetoric of the spokesman of a government openly pandering to lawbreakers?

The government is making a big mistake negotiating with the clubs. It made them an extremely generous and attractive offer last year which some of them snubbed. Now the law should deal with the clubs that refused to take advantage of the repayment scheme offered. The government cannot carry on suspending the rule of law for the sake of five insolvent football clubs.