The Cyprus Bar Association (PDS) expresses its strong reaction to a circular of the Tax Commissioner that requires the certification of signatures on purchase and sale documents for their submission for the purpose of calculating the Capital Gains Tax.
According to an announcement by the Association, in recent days multiple complaints have been submitted by lawyers, as the Tax Authority does not accept the submission of purchase and sale documents if the signatures are not certified.
"The circular has no legal basis"
The Cyprus Bar Association states that the relevant requirement arose from a recent circular of the Tax Commissioner, however it expresses categorical disagreement, arguing that the directive is not based on a legislative or regulatory framework.
As noted in the announcement, no law or regulation requires the certification of purchase and sale agreements in order to be considered valid, while at the same time there is no authorization to the competent ministry to impose such an obligation for administrative purposes.
Demarche to the Ministry of Finance and the Commissioner of Taxation
The Board of Directors of the PDS has already made a demarche to the Minister of Finance and the Commissioner of Taxation, requesting the immediate annulment of the circular, which it characterizes as illegal.
The Association states that it will continue to monitor the issue and will inform its members of any developments.
