German FA hit with hefty tax payment over 2006 World Cup

The German Football Association must pay 19.2 million euros in back taxes related to a controversial payment for the 2006 World Cup but it will challenge the Frankfurt tax office's decision, it said on Friday.

The tax office said the payment of 6.7 million euros from the DFB to world soccer's governing body FIFA in 2005 had not been declared properly and the association now owed 19.2 million.

That payment has triggered several investigations in the past two years over allegations it had been used as a slush fund to buy votes in favour of Germany's bid to host the 2006 tournament.

"The tax authority is questioning the tax deductibility of the payment and the non-profit character of the DFB for the year 2006," the DFB said in a statement.

Premier League

Exclusive: Klopp on Liverpool’s title chances – 'I don't write it off'

an hour ago

"The DFB, following advice from tax and legal advisors, will challenge these altered tax assessments," it said.

Franz Beckenbauer was the chair of the 2006 World Cup Organising Committee

Image credit: Getty Images

Officially, at the time the payment was made, it had been for an opening ceremony. But such a ceremony never took place and a DFB-commissioned investigation last year said the sum was the return of a loan via FIFA from former Adidas chief Robert Louis-Dreyfus.

It has never been clarified what the initial loan had been for and why it had to be paid back to the late Dreyfus via FIFA.

The 2006 World Cup organising committee chief Franz Beckenbauer has vehemently denied all allegations the funds were used to buy votes in favour of the German bid.

The 2006 tournament was ultimately won by Italy

Image credit: Reuters

While cleared in the DFB report, the former World Cup winning captain is, however, facing criminal proceedings in Switzerland over payments related to that tournament.

The Swiss Attorney General's Office (OAG) opened criminal proceedings against Beckenbauer and three other former high-ranking German soccer officials in 2016 related to allegations of fraud, criminal mismanagement, money laundering and misappropriation of funds.

Football

'If Slot is the solution, then I'm more than happy' - Klopp on Liverpool

00:03:05

|

6 hours ago

Premier League

‘More than happy’ – Klopp gives Slot approval for ‘best job in the world’

6 hours ago

Olympic Games Paris 2024 (W)

Brazil legend Marta to retire from international duty this year

7 hours ago