Genk had been under the radar of the tax authorities for some time for having benefited from non-profit status. The Limburg club risked having to pay a colossal sum of 39.4 million euros in corporate tax. Finally, an agreement was reached with the tax administration.
A contested special status
Genk were the last Jupiler Pro League club registered as a non-profit organization, allowing them to avoid corporate tax. The tax authorities contested this situation, demanding regularization. The club appealed the initial claim of almost €40 million and won a partial compromise.
Still a significant amount
According to The Latest NewsKRC Genk has concluded a financial arrangement with the tax authorities. During the General Assembly, it was announced that the club would pay 14 million euros to the FPS Finances. Although significantly lower than the amount initially claimed, this contribution remains substantial.
A situation finally resolved
This settlement puts an end to the dispute with the tax authorities, which could have reached 40 million euros. Furthermore, Genk presented impressive financial figures, including a record turnover of 92.7 million euros and a profit of 46 million euros in the transfer market.
Tax debts erased
With this payment, all tax debts until the end of last season are now paid, including those linked to Operation Clean Hands. Chairman Peter Croonen commented: “We would obviously have preferred not to have to pay this amount, but this puts an end to a latent problem. We can accept this new reality.”
