Tax Compliance a Real Goal

It’s not just movie stars who are getting in trouble for not paying their taxes these days. Professional athletes have their share of issues, too.

In Italy, the Serie A club Siena lost one point due to late payment of taxes on players’ wages. The loss of the point was crucial to the club, which fell to sixth place as opposed to sharing fourth place with Udinese and Livorno. In addition, club president Paolo De Luca received a three month suspension by the Italian Football League’s disciplinary commission for his role in the tax fiasco. He has vowed an appeal.

This is not the first team in the League to encounter tax issues in 2006. Serie B club Pescara also lost a point in July when it, too, failed to meet a tax deadline.

The Romanian Soccer Federation (FRF) also announced a few months ago that it was shuffling first division team Sportul Studentesc Bucharest to the second division because of outstanding tax debts of approximately three million euros ($3.79 million). It had been revealed that local tax authorities were owed more than 30 million euros by first division teams. However, Sportul Studentesc was singled out for failing to reach a payment agreement. As with Club Siena, an appeal is planned.