Criminal prosecutions are underway for club debts to social insurance, according to statements by the Minister of Labour, Yiannis Panagiotou, after the meeting of the Council of Ministers. The Minister clarified that the procedures for the collection of debts to the Social Insurance Fund (SSF) are different from those concerning Income Tax, under the existing legislation.
There is no settlement in instalments for the CTA
Mr. Panayiotou stressed that the legislation does not provide for settlement by instalments for debts to the Social Security Fund. All employers are obliged to pay their employees' contributions on a monthly basis, as required by law.
"If delays in payments are detected, the Social Insurance Services proceed with representations and, if the debts are not paid, the legal procedures provided for are triggered," he explained.
Criminal proceedings in force for debtors
Replying to a question on whether criminal proceedings have already been initiated, the Minister confirmed that there are cases that are in the judicial process, as well as cases in which the process has not yet started due to more recent debts.
"Any employer who fails to meet his obligations, is subject to the provisions of the law and faces the consequences of justice," he noted.
If the proceedings go to court, the only possibility of withdrawing prosecution is full payment of the debt. Otherwise, the judge will decide on the imposition of penalties on offenders.
No exemption from the obligation to pay contributions
The Minister was clear that there is no exception for any natural or legal person.
"Whatever applies to the citizens of the Republic of Cyprus, applies to all companies and unions. Those who have collected debts are subject to the respective procedures," he said.
With criminal prosecutions already underway, the government says there will be no exceptions for businesses or unions that fail to meet their insurance obligations.
CNA
