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Cyprus tax loses rose to 626 million Euros in 2009

A report by the Island’s Auditor-general, Chrystalla Georghadji, show that Cyprus lost revenues amounting to 626 million Euros in 2009.

ACCORDING to the Auditor-general’s report, the Island’s Inland Revenue Department collected €1.31 billion in taxes last year compared to the €1.35 billion it collected in 2008.

However, the government lost millions of Euros in tax revenues because it failed to introduce proposals made by the Auditor-general last year on tax evasion, the revaluation of immovable property and capital gains tax.

By the end of 2009, the amount of revenue lost amounted to €626 million compared to the €580 million lost in 2008; an 8% increase.

One problem area highlighted in Chrystalla Georghadji’s report was the loss in revenue from property sales. It noted that in many sales the registered sale price was lower than the sale price achieved and that this reduced the amount of capital gains tax collected by the state.

The Cyprus Church came under fire. According to Georghadji, it could owe as much as €175 million in unpaid taxes because it failed to comply with an obligation to declare its real estate holdings. But this amount could be as much as €74.3 million lower according to an estimate based on nominal values by the Audit Office (a re-evaluation has been requested).

In May this year, Archbishop Chrysostomos was reported as saying that he would not pay a “single Euro” in unpaid taxes “as long as he is the head of the Church”.

Readers' comments

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  • Hector says:

    What a fine example the Church sets.

  • Peter says:

    @Dimitri – The EU will eventually step in and Bail Cyprus out of any debt.

    Problem sorted ! So true Matt.

    Ireland borrowed 48 billion Euros to get itself out of debt??

  • Matt says:

    @Dimitri – The EU will eventually step in and Bail Cyprus out of any debt.

    Problem sorted !

    @Steve – Cyprus is not really in a mess. It’s the unfortunate people that have been stiched up with debt that are in a state.

  • dimitri says:

    No mention of all the civil service people who get fat salaries supplemented by the cash from second jobs most of them have! problem is Cyprus is too small too many people know too many people who influence policy, and any changes will be slow to come….just hope the EU can actively step in to curtail the ridiculous public service situation…

  • Steve says:

    What sort of island is this. This report suggests that even the church is scamming the government. Link that with the lawyers, developers and all the others that jump on the bandwagon its no wonder the island is in such a state.

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.


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