By Samindra Kunti
March 27 – Tax authorities in Belgium are stepping up their investigations into domestic football following unannounced inspections at the Belgian FA and the Pro League.
The BBI, the administrative body for special tax investigation, has been working extra shifts to try and get Belgian football in line with its legal tax obligations. The BBI discovered that several clubs from the Belgian top-flight, the Pro League, had not paid a penny of the levied tax since 2008. The local tax authorities were dismayed about the discovery as it concerned a lump sum of several millions of euros.
In Belgium some football clubs operate as legal non-profit organisations, but they have to pay 15% tax on TV revenue. Telenet and Belgacom bought the rights to broadcast live matches of the Jupiler Pro League.
The authorities have been mediating with the Belgian top-flight clubs for a year and a half to seek payment of the tax debt. Club Brugge, AA Gent and Waasland-Beveren are among the clubs to have made a deal with the tax authorities, according to local press reports.
Lately, tax authorities have also targeted some of Belgian’s leading players as they may have been guilty of tax evasion. Eden Hazard, Thibaut Courtois, Divock Origi and Kevin Mirallas are among the players who have a firm in Luxembourg to enjoy a favorable tax regime for their image rights. This is legal as long as the players can prove that the firm’s management operates from Luxembourg.
Following these developments the BBI has launched a general investigation into the Belgian football industry, targeting the KBVB, the Belgian FA, and the Pro League, the association of top-flight clubs. They “are providing full cooperation” read a press release from the BBI.
“The Belgian FA and Pro League both give their full cooperation to this unannounced inspection,” declared the KBVB in a statement.
Contact the writer of this story at moc.l1734934187labto1734934187ofdlr1734934187owedi1734934187sni@i1734934187tnuk.1734934187ardni1734934187mas1734934187