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€627mn on Lagarde list scrutinized

04/12/2015 11:35
Part of the €627 mn deposits of Cypriots found in a Swiss bank according to the Lagarde list, are heading to tax authorities.

Finance Minister Haris Georgiades who spoke on national radio this morning and was asked about his reference to the Lagarde list yesterday at the plenary session of the parliament, stressed that accounts’ identification has been completed and the tax department is in the process of finding out which are related to Cyprus, who are foreign depositors and who are Cypriots and can be legally taxed.

The minister revealed that during the investigation of names included in the notorious list, it was found that some accounts had only an account number and no deposits.

"But there were accounts with significant amounts relating to an equally significant number of persons” (Cypriots), the minister stressed.

Mr. Georgiades in his brief reference to the Lagarde list at the Parliament said that it relates to 361 accounts with total deposits of € 827 mn during 2005-06, of which almost €200 mn belong to persons who either do not relate to Cyprus or are not residents of Cyprus. "

Asked to clarify whether the € 627 mn is under the microscope of the tax department, the minister replied affirmatively, noting that € 627 mn were proved to be bank accounts (in Switzerland) during 2005- 2006 and are related to Cypriots.

"This amount is being examined to see if it is fiscally justified. At first sight it seems that a part of that amount is fiscally justified. "

He stressed that the tax department is ready to impose the first taxations to affected depositors who are on the list, before the end of the month.

According to information leaking from the Ministry of Finance, the examination of the 361 accounts is still ongoing.

An initial tax will be imposed for cases in which the department identified that deposits were not reported to the tax department during the specific period.

The finance minister who was asked if there is a tax evasion issue for the affected Cypriot depositors in the Swiss bank and what other measures the competent authorities may take, replied that apart from taxation imposition, the other measure is prosecution.

"The prosecution," he said, "does not depend on the tax department or the Ministry of Finance but on the independent institution of the legal service."

"If in addition to the imposition of taxation, evidence is found which may justify prosecution, this will be decided by the Attorney General” he said.

Mr. Georgiades pointed out that only one case has been brought to justice for tax evasion, during all these years in Cyprus.

Asked by the journalist whether he refers to the case of the former Central Bank Governor Christodoulos Christodoulou, the minister replied affirmatively.

Replying to another question, Mr. Georgiades observed that if we want to publish names we should change the law.

He explained that the country's existing legislation imposes secrecy.

He made clear that he would not want to know any name that is listed, before the completion of the investigation.

"The tax department does its job properly and these are my explicit instructions because we saw what happened in other cases in other states, when names of political figures were selectively leaking resulting to deleted or reduced evidence," as he noted.

The finance minister was not able to confirm whether there are names of public figures on the list, since as he stressed, the list did not come to his hands. Only in the case of prosecution the name of the accused will be visible.

He added that he has no problem for the law to be changed "and bring to light anyone who has evaded taxes, but as we have laws we should apply them and we are applying them with results," he said.