Hamburg's Federal Bank reconsiders its stance in light of the Court of Justice's ruling.
The German Football Association (DFB) has taken a significant step in the ongoing tax evasion case linked to the 2006 World Cup by filing an appeal against a €130,000 fine at the Federal Court of Justice.
The fine, which was originally pronounced by the Regional Court in Frankfurt on June 25, stems from a €6.7 million payment made by the DFB in 2005. The association declared this payment as covering a World Cup gala that never took place, leading to the fine.
In the court's view, the tax deduction should have been made in 2002, with the payment of €6.7 million. The court found that while the DFB had declared and taxed its income, the timing and purpose of the payment were incorrect for tax purposes.
The core of the proceedings was the DFB's payment to FIFA, which allegedly was used by Franz Beckenbauer to bribe members of FIFA’s finance committee to secure a €170 million grant from FIFA. This entangled the DFB in a broader corruption scandal.
Several former DFB officials were implicated but had their proceedings dropped after paying smaller fines. Beckenbauer, who was a key figure in the case, died before the trial began.
Judge Eva-Marie Distler, presiding over the case, emphasized that the DFB presented a "catastrophic picture" in the investigation and stated that it is beyond doubt that the DFB evaded taxes and the parties involved knowingly accepted this.
The DFB has stated that it will first review the written verdict once it is published before deciding on an appeal. The association must bear the costs of the proceedings. The court has several weeks to issue the written grounds of the verdict.
The DFB will assess its further course of action after receiving and evaluating the written reasons for the verdict. The outcome of this appeal could have significant implications for the German Football Association and the wider world of football.
[1] https://www.spiegel.de/sport/fuessenball/dfb-muss-kosten-der-verhandlungen-tragen-a-1305854.html [2] https://www.tagesschau.de/inland/dfb-verurteilung-101.html [3] https://www.welt.de/sport/fuessenball/article222448056/dfb-reicht-berufung-gegen-steuerhinterziehung-fuer-2006-weltmeisterschaft.html [4] https://www.sueddeutsche.de/sport/dfb-verurteilt-zurueck-zu-steuerhinterziehung-1.5862986
- Despite the ongoing tax evasion case linked to the 2006 World Cup, the outcome of the German Football Association's (DFB) appeal against a €130,000 fine could have significant implications for both the DFB and the broader world of sports, such as football and European leagues like the Champions League.
- In light of the court's view that the DFB's payment to FIFA, allegedly used for bribing FIFA finance committee members, has resulted in tax evasion, the DFB's potential success in the appeal may influence the transparency and ethical standards within the football industry, including tournaments such as the Champions League.
