Tax authorities demand 121.2m euros back from Belgian football sector after fraud scandal

The Belgian tax authorities are demanding the repayment of 121.2 million euros from the Belgian football industry, Het Laatste Nieuws reported on Tuesday. While waiting for the money, the tax authorities have frozen the clubs' provisional broadcasting rights.

In 2018, prominent figures in Belgian football were accused of financial fraud, money laundering, bribery and match-fixing. Football agent Dejan Veljkovic, one of the key figures in the investigation, provided evidence of wrongdoing by many clubs, coaches and other intermediaries in exchange for a lighter sentence.

Six years later, no convictions have yet been handed down. But the Special Tax Inspectorate (BBI) has opened 114 cases, 71 of which have been closed so far, writes HLN.

The parties involved, which can be individuals, companies or football clubs, will have to pay a combined 121.1 million euros in taxes that the tax authorities have missed out on, for example because of falsified contracts. The BBI does not disclose the names of the parties involved.

KV Mechelen announces deal

So far, KV Mechelen is the only party that has officially announced that it has reached an agreement with the tax authorities. "These were not easy negotiations. The result is that the current shareholders have made a considerable additional financial effort to reach and finance this agreement in the interest of KV Mechelen," the club announced on its website.

The tax authorities' decision will be a tough pill to swallow for many Belgian football clubs, as many are in financial trouble. As a whole, the sector booked a loss of 650 million euros over the last six known financial years.

According to Het Laatste Nieuws, apart from KV Mechelen, at least five other professional clubs have decided to make a deal with the tax authorities after years of negotiations. To put pressure on clubs that did not yet agreed on a deal, tax authorities have frozen their broadcasting revenues.