Players cash payments under fire

SOCCER – FOOTBALL clubs in the country suspected of paying players in cash to avoid tax could face audits, penalties and even prosecution.

This was a warning issued by the Eswatini Revenue Service (ERS) to teams, amid growing concern about compliance in the domestic game.

Stakeholders in the local football scene, who requested anonymity, allege that some clubs are bypassing the Pay As You Earn (PAYE) system by paying salaries outside formal banking channels.

ERS spokesperson Ntobeko Manana said such practices did not exempt employers from tax obligations, regardless of how salaries were paid.

She said employers acted as appointed agents of the ERS, responsible for withholding PAYE from employee salaries and remitting it to the authority.

Manana warned that failure to deduct and remit PAYE may amount to tax evasion or tax non-compliance depending on circumstances.

She said they had strong enforcement tools, including audits, estimated assessments, penalties, interest charges and where necessary, prosecution of offenders.

Manana added that all these consequences could be avoided through full tax compliance by employers and prompt remittance of deductions.

In some countries, clubs employing foreign players must also withhold prescribed tax portions, further tightening compliance requirements in professional football.

ERS warned that non-compliance undermined national revenue, with PAYE forming a key source of funding for public services and development.

The revenue authority says it is increasing enforcement through targeted audits, taxpayer education and engagement with sporting organisations.

This comes as comparisons are drawn with more structured leagues such as South Africa’s Betway Premiership, where taxes are automatically deducted through formal payroll systems.

“With scrutiny intensifying, clubs accused of avoiding tax obligations may soon face audits and stiff penalties if found guilty.”

Under Eswatini’s tax framework, professional footballers are treated as formal employees of their clubs, meaning their salaries are subject to Pay As You Earn deductions before payment is made.

The system requires employers to calculate tax based on income brackets and remit it directly to the revenue authority.

This ensures consistent collection of government revenue while placing compliance responsibility on clubs as withholding agents for player earnings across all levels of professional competition.

“This warning reflects a broader push by the ERS to tighten compliance in high-income sectors, particularly where informal payment practices may obscure taxable income. Football, as a growing professional industry in Eswatini, has come under increasing scrutiny as we seek to safeguard public revenue.”

With audits and enforcement actions expected to intensify, clubs are being urged to regularise payroll systems and ensure transparency in player remuneration to avoid legal and financial repercussions going forward across the domestic league structure.

Compliance remains essential for sustainable football development.

…Top club accused of envelope payments

SOCCER – ONE of the players from a top club has revealed that players were routinely paid their salaries in cash, often handed over in envelopes, with no formal banking process involved.

The player, who requested anonymity in fear of victimisation, said this had been the practice since he joined the team.

“Ever since I arrived here, we have never received our salaries through the bank. They just give us the money in envelopes, and sometimes even without envelopes. It is like we are getting allowances, yet it is our salary.”

He expressed concern that the arrangement leaves players vulnerable and without proof of income.

“There is no track record of what we are paid. If there is ever a dispute, you have nothing to show,” he explained.

“Most of the players in the team are not happy with this arrangement but we are afraid to raise the issue with management.”

The player also highlighted the risks associated with carrying cash.

“One can be unfortunate and lose all the money on the same day because we are paid in cash,” he said.

The revelation comes amid warnings from the Eswatini Revenue Service, which has threatened to clamp down on clubs that allegedly pay players in cash to avoid tax obligations.

Several teams have already been accused of failing to remit taxes properly, raising concerns about transparency and compliance within local football structures.

A source alleged that most clubs paying players in cash are privately owned, including some community-based sides and even the country’s bigger teams.

Efforts to get a response from Mbabane Swallows proved unsuccessful, as PRO Knowledge Bhambo Ngwenya did not reply by the time of print despite being sent a questionnaire.

However, Malanti Chiefs PRO Mfanimpela Mngometulu dismissed any such practice at his club, stating their players were paid through the bank, as the club director was based outside the country, suggesting a more transparent payment system.

“We pay our players using the electronic system, so there is no way we can avoid paying tax,” he said.