Cypriot Government Claims Public Showing Strong Interest In Tax Amnesty

by Lorys Charalambous, Tax-News.com, Cyprus

09 September 2004

The Cypriot government has claimed that the public is already showing a great deal of interest in its tax amnesty on undeclared assets which commenced on September 6, according to a report in the local media.

The Special Tax Liabilities Administration Committee Chairman, Theofilos Theofilou, has revealed that a large number of citizens have already submitted the relevant application forms to be included in the amnesty, although he declined to give specific figures, the Financial Mirror reported.

Under the terms of the amnesty legislation, those taking the opportunity to declare hidden assets will be subject to a 5% tax until the end of November, rising to 6.5% to the end of December 2004.

However, outside commentators say that the government's refusal to include a VAT waiver in the amnesty (it claims that the process is so secret that the VAT authority won't learn the names of those benefiting from amnesty) will frighten off most of those who might have taken part.

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