- Tax Amnesty - Plans to implement a tax amnesty for repatriated capital up to December 31, 2013, was decided by the Cabinet of Ministers yesterday. This is seen as a way the cash-strapped government can fill empty coffers more effectively even though the Troika does not favour such a move. Government spokesman Christos Stylianides said that the amnesty will not apply for everyone as the government is very sensitive on issues of tax evasion and in no way wants to be seen to encourage it. Officials’ hopes to attract money back into the country to reinforce liquidity due to an economy broken by the bailout blast. Stylianides said that the right to amnesty will be given based on specific criteria including an immediate and measurable investment or settling outstanding obligations to banks or the State. Long-term deposits of money from the amnesty in banks for a minimum of five years and the purchase of government bonds are also part of the deal to be put on the table. Another sweetener, the spokesman explained, is that individuals who repatriate funds under the plan will also be exempt from income tax. “The Cabinet has authorised the finance minister and relevant departments, particularly the Inland Revenue Department, to draw up a draft bill to be placed before the cabinet as soon as possible, even within the next fortnight. “Many countries in financial crisis have implemented this measure; of course always with certain criteria in order not to create the impression that just anyone can avoid paying taxes due to the amnesty,” Stylianides said. The amounts of funds that could be repatriated have yet to be determined but procedures to calculate the estimated amount are underway.
Posted on: Mon, 22 Jul 2013 07:19:07 +0000
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