News Local State failing in tax collection

State failing in tax collection

Millions of euro owed in tax have not been collected by the state because of inadequacies in the system, according to an Audit Office report for the fiscal year of 2016, released today.

In the report, the Auditor General urged the Tax Department to take the measures necessary to curb the problem of millions of euro in uncollected taxes that keeps rising alarmingly, despite efforts by the state to dodgers and offer payment facilities to facilitate collection.

According to the report, €1.823.318.762 in direct and indirect taxation has not been collected by the state in 2016, a rise of almost €100 million compared to €1.742.621.822 in 2015.

€1,337,576,705 of the amount refers to uncollected direct taxes and €485,742,057 to indirect taxes (VAT).

Major sources of uncollected tax:

Significant tax losses were recorded by persons who receive rents. Specifically, during the period 2004-2014, the report shows that there was a number of cases where people did not declare the whole or part of the income they made from renting properties.

Other major instances of undeclared income were found in MOT centres (€11.1m during 2002-2015) and gyms (€24.4m during 1995-2015).

A number of natural and legal persons active in hairdressing, aesthetic/cosmetic, natural wellness/relaxation and makeup businesses were also found to have not submitted tax statements.

Football was also one of the sectors identified as problematic. Uncollected taxation from football teams is estimated to be €34.15m (€16.84m in direct and €17.31m in indirect taxation). The Audit Office also spotted a number of referees/assistant referees who have not declared their income from refereeing games in Cyprus and abroad.

The report stresses that the Tax Department should be particularly concerned about the amount of uncollected taxes and that the Audit Office had raised the alarm in earlier reports.

The settlement of pending claims and the collection of late taxes will significantly increase state revenue, it adds.



Top Stories

Biden plans ‘roughly a dozen’ Day One executive actions: aide

   U.S. President-elect Joe Biden will cap a busy day of inauguration pageantry by using the powers of his new office to push policy changes...

U.S. capitals gird for pro-Trump armed protests as FBI flags risk of violence

  Protesters were expected to descend on statehouses across the United States in support of baseless claims that electoral fraud robbed President Donald Trump of...

France says Iran building nuclear weapons capacity, urgent to revive 2015 deal

  Iran is in the process of building up its nuclear weapons capacity and it is urgent that Tehran and Washington return to a 2015...

Insurance agent caught with 6 forged vehicle policies

  A car insurance agent was remanded in custody for six days by the district court in Limassol, after he was arrested yesterday in connection...

Locals fume as central Limassol floods again

  Yesterday's torrential rains caused yet another night of chaos in the Limassol historic city centre, with many shops flooding and drivers trapped in their...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...