Markidis: AI-supplemented Tax For All will be fully operational by summer 2025

The Tax For All service will be fully operational by the summer of 2025, Tax Commissioner Sotiris Markidis has said, noting the system will also utilise artificial intelligence (AI).

Speaking at the 7th Cyprus International Tax Conference, Markidis said the design includes more modules, including artificial intelligence functions.

More specifically, regarding Tax For All, he said, “To achieve our goals, we have successfully launched the Tax For All (TFA) software solution. In recent months, TFA has been used by professionals and taxpayers for indirect tax functions. The results are very encouraging and the improvement in the quality of the services provided is more than obvious."

The government plans to gradually add more modules, including artificial intelligence functions Markidis revealed.

He said "we plan to gradually add more modules, including artificial intelligence functions, and expect TFA to be fully functional by summer 2025."

Earlier in his address, Markidis emphasised that the tax reform affects society as a whole and therefore many parameters must be taken into account. He emphasised the importance of including the right sizes for compliance, simplicity and social stability as well as complying with European directives and other international tax aspects.

Regarding the government's desire to increase the tax-free income from €19,500 to €24,500 euros, Markidis said that it is estimated that this increase will lead to a decrease in tax revenues by approximately €150 million.

He added: "To reduce this decline in tax revenue, we may need to change tax rates and scales. We should consider introducing a capital gains tax not only on profits from the sale of real estate but also on profits from the sale of other luxury assets of a capital nature".

He also stated that the State is considering increasing fines for non-compliance.

As for tax collections, "we have to find innovative ways to increase them," Markidis said. A possible measure is for the Tax Commissioner to be able to accept from the taxpayer, on a voluntary basis, immovable property as a means of paying off tax debts, he noted.

Finally, he gave assurances that the State will continue the efforts for tax reform with adaptability.

"The Cyprus Tax Department always remains at the forefront with taxpayers and their representatives. As the tax administration we assure you that we will take all the actions required to support the tax reform plan and its successful implementation and we will be ready to effectively adapt to any changes,” he said.

Taking place in Nicosia on 20 February, the Cyprus International Tax Conference is considered one of the most important gatherings for tax professionals in Cyprus. This year’s conference is taking place amidst a radically changing landscape in international tax, which will bear an impact on the upcoming Cyprus tax reform currently under preparation.  This year’s conference aims to explore the main drivers behind EU and international tax policies, as well as the potential impact on Cyprus tax legislation and practices for both tax practitioners and companies in the main sectors of the economy.

Tax experts from both Cyprus and abroad, including policymakers and private sector leaders in their respective fields, will take the stage to share their insights on the changing architecture of international tax. Topics will include the Unshell Directive, the taxation of digital assets and the impact of DAC8, transfer pricing, VAT in the digital age, recent international tax cases and their impact on tax planning as we know it, as well as the much-anticipated Cyprus tax reform.

(Source: InBusinessNews)