In a recent interview, the Cyprus Minister of Finance, Charis Georgiades, has admitted that his office is constantly receiving recommendations by local tax payers who wish to settle their tax arrears with the tax authorities.
The Minister further announced the formation of a dedicated Tax Authority Unit which will be exclusively dealing with the supervision of “large local tax evaders”. He explained that the watchdog’s principal objective will be the monitoring and investigating of big local tax payers who exploit the current situation in order to evade their tax commitments towards the fiscal authorities.
The Unit is expected to be in full operation by the end of 2014 and it certainly is one of the numerous measures that the government had to implement as a result of its obligations towards the European Union and the International Lenders. Another relevant action that the government is considering to take, upon the Troika’s coercion, is the merge of the Income Tax with the VAT authorities.
This initiative is greatly welcome amongst the government officials and constitutes a further step forward in the sophistication of the Cypriot Tax Authorities. Besides, the government has additional reasons to proceed with adopting such measures in light of the recent economic crisis and the struggle of the country’s treasury to absorb new capitals.
It comes with no doubt that such a movement will certainly rattle those concealing or thinking of concealing large amounts from the fiscal authorities. It should be emphasized however, that this new unit will be acting upon the local tax payers dealing in the Cypriot market and not those operating in the international sphere.
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