- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Immovable Property Tax reform a priority

THE PARLIAMENTARY Committee on financial and budgetary affairs has set priorities for the implementation of all actions necessary for the payment of the fifth bailout tranche.

According to a document sent by the Finance Ministry, by the 5th of June Parliament must approve the establishment and operation of a fiscal council and pass a bill that will integrate the Inland Revenue Department and the VAT Service.

By June 19 the House should vote for a bill harmonising the legislation amongst tax types so that not paying withholding taxes is a criminal offence and tax fraud is prosecuted as a criminal offence. It must also enact legislation to establish self-assessment for all income taxpayers by changing from a pre-assessment verification of income tax returns to post assessment audits selected on the basis of risk and pass legislation to strengthen powers of the tax authorities to ensure payment of outstanding tax obligations, including providing power to garnish assets or prohibiting the alienation or use of assets, including property and bank accounts, by the taxpayer.

By the end of June Parliament should enhance the effectiveness of competition law enforcement by adopting the necessary amendments to the legislation on mergers and antitrust.

Also by the end of June the Government must, among other things, bring before Parliament a bill reforming Immovable Property Tax and another introducing the Guaranteed Minimum Income.