The lies are over for those businesses that do not issue receipts and invoices, but also for those with tax debts over €20,000. In a few days, the tax collectors will be taking to the streets, raiding businesses located mainly in tourist areas and activating the new weapon they received in their hands, in the context of the tax reform that has been implemented since the beginning of the year.
This is the measure of sealing (suspension of operation) of businesses, which will be implemented for the first time in Cyprus. This regulation, which was chosen to gradually come into force in July, is added to the other measures that strengthen the collectability of the Tax Department and concern the placement of MEMOs on real estate and the freezing of taxpayers' bank accounts for tax debts.
They bet on seasonal businesses
According to information from "F", the audits will initially focus on businesses that operate mainly during the summer months. The officers of the Tax will carry out on-site unannounced inspections in restaurants, bars, water sports businesses, souvenir shops, kiosks, as well as in businesses operating in the field of water excursions.
Specifically, in the latter category, the controls will focus on companies that carry out, during the summer season, one-day or short-term cruises within Cyprus.
The hot list of 500 major debtors
As we are informed, the Tax Department will start with the large debtors, i.e. those who have tax debts of more than €1 million. Already, the competent Department has compiled a special list, which includes 500 companies active in the field of betting, the sale of yachts and luxury vehicles.
In these businesses, the controls will be targeted.
Raids for evidence
At the same time, other officials will go from business to business and check whether they issue invoices or give receipts to their customers. It is noted that the tax collectors will lurk outside the premises of the businesses and will stop customers, asking them to present the receipts they received from the stores.
In addition, the products purchased by customers will be identified to determine whether the receipts issued by the business are correct.
The Commissioner of Taxation, Sotiris Markidis, speaking to "F", stated that the crews of the Department are ready to start the required inspections. As he said, the tax collectors, after going through the required training, have been provided with special equipment and tablets, while the appropriate changes have been made to the software of the Department, in which the officers will register the data per business.
Superintendent: We don't want businesses to close
The Tax Commissioner clarified that citizens will have no repercussions in case of non-issuance of a receipt by a business. He also called on the public to cooperate with the tax collectors, presenting the receipts when requested and answering the relevant questions.
According to the Tax Commissioner, instructions have been given to the officials so that the audits are carried out discreetly. "We recognize the difficult year that the tourism sector is going through, but we will discreetly carry out the checks. We do not want to damage any business, but we call on them to cooperate and comply," he added.
Extra time for compliance
According to the law, those businesses that do not issue receipts or have tax debts will receive a first warning, with a deadline of fifteen days to comply. In case they continue to violate the law, they will receive a second warning with a new fifteen-day deadline. If, in the next check, they do not comply, then they will receive a third warning lasting five days. When the grace period expires, businesses will be sealed.
"Come for timetables"
At the same time, he clarified that any taxpayer who proceeds with debt settlement schedules does not automatically mean that he is considered compliant. As he pointed out, he will be considered to apply the legislation only when he pays the instalments that he will agree with the Tax Department.
It is recalled that from next year the measure of sealing premises will not only be applied for non-issuance of receipts and tax debts, but also for the non-submission of tax returns. For this reason, taxpayers have been given a deadline of one year to submit their tax returns.
