Intense concern, disappointment, and strong reactions among the legal community have been caused by some of the provisions included in the tax transformation bills, since - as the community members note - the provisions lead to regression and pose serious risks, both for the sector and for business in general.
In fact, in an effort to reverse the course of events, the Cyprus Bar Association, despite the fact that Cyprus is going through a "dead" period due to the summer holidays, is in frequent contact and communication with other professional bodies, preparing the proposals that it will submit within the framework of the public consultation that is currently underway.
It is noted that, as InBusinessNews recently reported the assessment made by the business and professional world is that the drafted bills not only do not correspond to what was presented months ago at the Presidential Palace, but also include provisions that, if voted in, will put the country at a disadvantage compared to other centres for the provision of professional services, while in addition, they will also affect Cypriot businesses with additional taxes, as well as the abolition of specific incentives that were in effect until today.
On the other hand, sources that approach the controversial proposals in question from a different perspective appear reassuring, emphasising that the provisions that have been introduced do not alter the reform and do not remove the generous, as they express it, character of it towards the country's business ecosystem, but consist of serving the necessity of simultaneously taking specific measures to combat tax evasion and build a tax culture.
Michael Vorkas: We have been disappointed by a multitude of provisions
In an effort, however, to gather the reactions of all stakeholders, InBusinessNews contacted business and professional organisations and recorded their views on the controversial bills, which the Ministry of Finance has put out for public consultation until 25 August, a period that, as everything indicates, will be extended.
Speaking to InBusinessNews, the President of the Cyprus Bar Association, Michael Vorkas, said that "what has been conveyed to us about the six bills is that we have not identified what we expected and would essentially constitute a real tax transformation."
On the contrary, he stressed, "we have been disappointed by a multitude of provisions included in the bills."
According to Vorkas, the Tax Committee of the Cyprus Bar Association is continuing to study the draft laws and is preparing the Association's recommendations-positions, which will be submitted within the framework of the public consultation that is currently underway.
"We are also in constant communication with other professional bodies. From our contacts so far, we find that the concerns are not only ours, but are broader," he added, noting that the Cyprus Bar Association will very soon publish its disagreement with what has essentially been brought to its attention to date.
Asked whether the Association will submit suggestions/proposals for correction or change of provisions with which it disagrees, Vorkas answered in the affirmative.
As he said, "the proposals we will submit will have to do with identifying the problems that the tax bills seem to face, both in terms of their legal aspect and the risks that exist for both the sector and business in Cyprus, whether this has to do with local entrepreneurs or even foreign entrepreneurs and investors."
Additionally, the President of the Cyprus Bar Association concluded, "We will also focus on some provisions, which we find completely opposed, since essentially instead of driving things forward, they lead us - unfortunately - to regression, something which should be understood and avoided."
ICPAC also disagrees with provisions of the bills
In addition to the Cyprus Bar Association, the Institute of Certified Public Accountants of Cyprus (ICPAC) is also expressing disagreement with the provisions of the six tax reform bills, and is also preparing to submit - within the set deadlines - its views.
As InBusinessNews is informed, the Council and the tax committees of the ICPAC are continuing an article-by-article examination of the bills for tax reform and, after this process is completed, the Association will submit its proposals and recommendations within the timelines set by the Government.
In fact, a source from the Institute emphasised to InBusinessNews that "the ICPAC will do whatever is necessary to submit proposals for the benefit of both the economy and society," since - he explained - there are issues with which ICPAC disagrees and will try, with its suggestions, to improve some of the controversial provisions of the bills.
In this context, according to the same source, the Institute has already made a series of contacts, including with the Tax Commissioner, Soteris Markides, during which it extensively discussed its proposals for tax transformation.
"These contacts will continue in the coming period, with the aim of the promoted tax reform benefiting both the economy and society," an ICPAC source concluded to InBusinessNews.
It is noted that last March, ICPAC submitted to the Minister of Finance, Makis Keravnos, a multi-page document with its views on tax reform, after identifying weaknesses in the recommendations of the Economics Research Centre (CypERC) of the University of Cyprus.
(Source: InBusinessNews)
