Insider Business BoC VRS appeal depends on whether compensation is taxable or not

BoC VRS appeal depends on whether compensation is taxable or not

The imminent Bank of Cyprus voluntary retirement scheme’s appeal to employees all depends on whether the one-off lump-sum compensation will be taxable or not, according to insiders.

Both the lender as well as the Tax Department keep cards close to their chest, even though talks have taken place and letters were exchanged on this crucial issue, one also said.

Tax Department head Yiannis Tsangaris is believed to have given the green light for compensation not to be taxed but nothing is absolutely certain. The scheme is to be presented to staff today.

In December 2017, the Department drafted legislation providing that the practice of non-taxed compensation the public and wider public sector was enjoying to come to an end. The draft bill also included the banking sector.

But the proposal was put aside because of the imminent February 2018 presidential elections at the time. And it is still in the parliament’s drawer. The scheme is the fourth exit scheme prepared by the bank since the financial crisis of 2013 and its subsequent bail-in by depositors.

The one-off compensation package to be offered to a total of 4,155 employees will not exceed €200,000 and will be calculated based on employees’ earnings and years of service, while their age will also be a factor.

The bank’s latest early retirement plan is expected to be along the lines of the previous one deployed in May 2016, when 450 employees had pressed the ‘exit button’.

If the scheme process goes smoothly and if the Helix project also goes according to plan which also provides that the 108 bank employees working on the non-performing loan package’s transaction are transferred to the buyer, then these two imminent moves will cut down staff by almost 500.

BoC’s aim is to have about 3,650 employees in 2020 so as to rationalise its cost base.

 

Read more:

https://in-cyprus.com/high-compensation-packages-for-new-boc-redundancies/

 

 

Top Stories

Attica in ‘orange alert’ state – new emergency covid measures announced

Deputy Civil Protection and Crises Management Minister Nikos Hardalias has announced emergency measures aiming to contain the spread of the coronavirus in Attica. A daily...

Kiti Bishop Nektarios test positive to the coronavirus

Kiti Bishop Nektarios (pictured) has, according to information, tested positive for the coronavirus. It is reminded that the Bishop after coming into contact with one...

Seven new coronavirus cases detected out of 3,039 tests

The Ministry of Health has announced that 7 new cases of the SARS-CoV-II virus were detected in Cyprus over the past 24 hours out...

There will be covid cases at schools but an outbreak must be avoided, Dr. Pana says

There will be positive COVID-19 cases at schools, but we must aim at avoiding an outbreak through contamination points, said Zoe-Dorothea Pana, a Lecturer...

Mitsotakis and Tsiodras sound alarm over rise in coronavirus cases, especially in Attica

Prime Minister Kyriakos Mitsotakis and the health ministry's representative for the novel coronavirus pandemic, epidemiology expert Dr. Sotiris Tsiodras, sounded the alarm over the...

Taste

Swordfish with aubergines

To toast the sesame seeds: place sesame seeds in a small non-stick frying pan over low heat and stir until you begin to smell...

Chicken with okra and bulgur wheat

Heat the oil in a pan and sauté the okra until golden. Remove the okra, lay out in an oven tray and sprinkle with...

Ravioli

Just a little before serving, heat the broth and add the ravioli. (If the ravioli is frozen you don’t have to defrost). Heat them...

Seafood kebab with avocado salad

Place the mussels, shrimps and salmon in a bowl together with tarragon and lemon zest. Season and cover, keeping in the fridge for 15...