Filenews 24 March 2021
Only a part of the total uncollected taxes, amounting to €2.4 billion to €2.5 billion, can be collected by the state.
This was revealed by The Tax Commissioner Giannis Tsagaris, speaking at the FMW Financial Media Way online conference, which discussed the Tax Framework and the need to modernise it.
According to an FMW press release, as Explained by Mr Tsagaris, those who owe taxes to the state include many companies that have been dissolved and natural persons who are not alive, which makes it impossible to collect them.
Indicatively, he mentioned that the largest amount of taxes (around €25 million) is owed by an American company, which for decades has been dissolved and there is no representative in Cyprus.
In his speech, Mr Tsagaris advocated the modernisation and reform of Cyprus' tax system, but stressed that this effort would not be easy. He suggested that Cyprus seek the help of foreign experts to make a reform that takes into account international tax trends.
After reporting that the existing tax system has successfully served our economy for years, he stressed that the Tax Department has made many improvements that help to better serve taxpayers. As he said characteristically, using the new technology it is expected that by the end of the year the tax files of the years 2015 – 16 will be processed and soon no taxpayer will need to visit the offices of the Tax Department for his affairs.
Referring to an issue raised by a listener on vat on the purchase of real estate, he said that he supports postponing this tax for a period of time in order to increase the real estate sector because of the pandemic, but added that this proposal should come from the government, in consultation with the European Union.
For his part, the President of the SESK, Dimitris Vakis, advocated tax reform and said that it should be in line with the digital challenge for Cyprus. Mr. Vakis stressed that any reform should be aimed at serving the economy, providing incentives for companies to come to Cyprus and digitally restructuring the Tax Department.
On behalf of Taxand, Tax Partner, Direct Tax and Transfer Pricing Costas Savvas developed the international implications, which will have a tax reform and highlighted the difficulties that may arise. After noting that international developments are running and cannot wait for us, he added that we should see what our competitors are doing and act accordingly. Mr Savva also said that individual reforms in areas that affect or are affected by the tax system must be preceded in order to make a tax reform.
On behalf of Deloitte, Tax and Legal Services Partner Antonis Taliotis said that the Cyprus framework, despite its weaknesses, served its purposes. But now, he added, the time has come for a radical reform that, apart from technical issues, we need to look at both the international environment and the economic – social side of the issue.
A new reform, he stressed, must take everything into account to serve the place over time.
On behalf of PwC, The Associate Head of Tax Compliance and Strategy Services Chrysilios Pelekanos said that the tax system of Cyprus can be further modernised to make Cyprus stronger and more competitive.
Mr Pelekanos recommended incentives in the field of innovation, health, education, the environment and green development.
Mr. Pelekanos expressed the position that Cyprus with the right moves can maintain the position of regional business centre in our region.
Conference coordinator was the well-known journalist, FMW Financial Media Way CEO Joseph Joseph. The conference was sponsored by the CDC, the main sponsor was Taxand Global and sponsors were Deloitte and PwC.
Source: Eyenews/CYP
