State moves to strengthen tax collection system

The Tax Department is moving to introduce stricter measures for tax collection, Phileleftheros reports.

Specifically, six new measures will be introduced over a three-year period:

1. Drafting a bill to simplify tax collection.
2. Improve the existing legal framework in ways to make it more effective in collecting taxes on time.
3. Install a new data-processing system, expected to improve response time to latent tax behaviour through an automated system.
4. Broadening and updating the tax base through information and risk strategies.
5. Setting up teams of tax collectors which will conduct checks on selected business and economic activities.
6. Implementation of a clearance and control strategy on late payments.

According to the Tax Department, €2.3 billion of uncollected tax money was owed to the state, in the first trimester of 2018.

Last year the Department’s revenue increased by 7.3% to €263 million compared to a 2.7% increase in 2016.  The total increase in tax revenue between 2015-2017 stood at 10.3%, which amounts to €358.6 million.

Read more:

https://in-cyprus.com/news/local/state-failing-in-tax-collection/