Cyprus VAT Office Rocked By Scandal

by Lorys Charalambous, Tax-News.com, Cyprus

15 January 2002

Speaking at a press conference, Cypriot Finance Minister, Takis Klerides revealed that the VAT Office is currently embroiled in a scandal involving one of its prosecutors.

Following investigations, which began at the end of December, it was revealed that Ermis Neocleous had allegedly pocketed around £40,000 in stolen VAT payments. According to reports, the companies and individuals involved over the two year period believed that they had paid the amount owed in VAT, whereas in fact Mr Neocleous was issuing plain, hand-written receipts, and then delaying court proceedings in order to cover up the theft.

Although Neocleous eventually confessed and returned the amount, investigations are ongoing, and VAT service staff are working 'at fever pitch' to discove how much was taken, according to Mr Klerides.

'Although Neocleous is being cooperative, this is not enough and we are not yet in a position to say how much was teken,' explained the Cypriot Finance Minister. He also revealed that the Attorney General's office would be involved in the investigation.

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