Editorial: show trial of clubs? Or emergency slaughter of sports?

Photo: Walter Zerla/ Panther Media

With Tax and Customs Board writing to finance and culture ministries of having developed doubts that, under the label of tax-free grants, sports clubs are actually paying wages, one wants to coldly ask: what took you so long?

Tax Board has filed claims for tens of thousands of euros of unpaid taxes, against three children’s sports clubs. Still, the fact that sports clubs pay grants instead of wages – in order to save money on social, income, unemployment taxes and pension insurance – has been known for years. As also the fact that coaches and helpers, living on the said grants, lack such social guarantees as provided by paid employment.

Surely, we should not find fault with Tax Board in the wages-grants issue – all they do is their job. Definitely, however, we need to ask: being aware of such a mixed system, why start solving it with a crusade against clubs – and not a discussion about changing the system on a legislative basis? Or did they take the bull by the horns, so to say, to make the sports circles better prepared for discussions? Might be, as despite of criticism of the system, sports federations have shown no forceful initiatives – even though mostly headed by politicians. 

However: replacing grants by wages, fearing the tax claims, would cause expenses at children’s and youth clubs to skyrocket towards levels unaffordable for many families. Also, hopes for state and/or local government support are not a granted for parents, at the moment, as the promised hobby education benefits are not to be found in the budget bill.

A question even broader also needs to be asked: why, in the hobby education category, is children’s sports treated so differently from music, for instance? In music schools, teachers are paid salaries, as they work where they fit due to skills and qualification. The work of a coach also requires skills, qualification and a place to use one’s knowledge and experience; even so, under a differing system, a coach gets a grant and the taxman knocks at the door. Why not have a look at the [Soviet time – edit] sports schools system one more time – perhaps, there are things we can learn?

The way the sports clubs do it is definitely not driven by a desire to systematically avoid taxes; rather, they just plainly lack money. Now, after the Tax Board intervention, it looks like things will have to get worse before they get better. Positive in a way, that a state agency has finally tackled a problem – long a cause for displeasure – and also analysed the situation, not merely presenting claims. Even so, this should not be limited to tackling just three clubs; rather, what we need is a solution enabling the state to get its taxes, yet leaving kids a chance to do sports.