Birkirkara FC owes some €360,000 in unpaid taxes spanning over a number of years, an ongoing review of the club’s fiscal affairs has established.
Sources at the Tax Department said the football club’s tax record is being reviewed after documents it submitted as part of an application to play European football were flagged as irregular.
It is understood that on Tuesday morning the club signed an agreement to enter into a payment plan with the tax authorities.
Earlier this month Birkirkara FC submitted compliance documents as part of their application to be licensed by European football’s governing body, UEFA.
However, the club’s application was cast in the spotlight after Times of Malta reported on Saturday that an investigation had been launched at the Tax Department.
The investigation is into the way an irregular repayment plan was issued to the club and an official at the department responsible for the matter has been suspended.
A previous compliance document issued to the club has also been cancelled over concerns of foul play.
UEFA licence
On Monday the Malta Football Association met with tax authorities and handed over a series of documents, spanning across several years.
The association will now decide later on Tuesday whether or not to issue Birkirara FC with a license to play European football.
The UEFA licence would entitle the club to participate in the new Europa Conference League and comes with cash allowances in excess of €250,000.
Meanwhile, sources close to the tax investigation told Times of Malta that Birkirkara FC were not alone in heavy tax dues.
“If we were to start collecting all the unpaid taxes owed by every football club in Malta, they would have to cancel the league next year,” a source said.
“It is about time we find a way to address this situation once and for all.”
Valletta FC owes some €150,000 in unpaid taxes over the years.
However, the club has been in a payment plan with the authorities for a number of years and has been honoring payments.
Tax sources said that if they called in clubs’ dues, it would be a red card for local football.
“If we were to start collecting all the unpaid taxes owed by every football club in Malta, they would have to cancel the league next year,” a source said. “It is about time we find a way to address this situation once and for all.”
Meanwhile, a source at the MFA said that while it was true clubs had significant dues, the recently introduced licensing system was seeking to address the matter.
In fact, this was why clubs had been entering into payment plans to get their affairs in order.
“We have to ensure that clubs actually honor those agreements and don’t just sign them without paying off their debts,” the MFA official said.
A previous version of this report incorrectly stated that Valletta FC owe some €200,000 in unpaid taxes rather than €150,000.