04/07/2003 15:06
Central Bank Governor, Christodoulos Christodoulou, said on Friday that the commercial banks, which had proceeded to the opening of a “secret account” violating the relevant legislation, will have to put up with the consequences. Mr. Christodoulou said that he is in favour of the incentives offered to “secret” account holders and rejected the provision of “full tax amnesty”.
The CB Governor noted that the export of funds abroad by Cypriot citizens started in December 1963 and stressed that there are several proposals which recommend that Cyprus should follow the experience of other European countries (Greece, Malta, Austria and Switzerland) “to grant incentives with the payment of a duty in the form of revenue to the state”.
Mr. Christodoulou explained that he is not aware whether “secret” account holders have fulfilled their tax liabilities in relation to the revenue from the interests or whether the Income tax has other claims and expressed his ignorance on the number of “secret” accounts in the and the funds exported abroad.
CB Investigation - Income Tax
The Central Bank is currently investigating the percentage of deposits, which appear dissimilar figures and intends to track down whether they fulfilled their tax liabilities. Mr. Christodoulou said that this is subject to the government’s policy and the Inland Revenue Department.
Mr. Christodoulou is in favour of a tax exemption but rejects the provision of “full tax amnesty”. “The government must lure these funds back to the island. It is important, however, not to give the impression that trespassers are awarded”, he concluded.
The CB Governor noted that the export of funds abroad by Cypriot citizens started in December 1963 and stressed that there are several proposals which recommend that Cyprus should follow the experience of other European countries (Greece, Malta, Austria and Switzerland) “to grant incentives with the payment of a duty in the form of revenue to the state”.
Mr. Christodoulou explained that he is not aware whether “secret” account holders have fulfilled their tax liabilities in relation to the revenue from the interests or whether the Income tax has other claims and expressed his ignorance on the number of “secret” accounts in the and the funds exported abroad.
CB Investigation - Income Tax
The Central Bank is currently investigating the percentage of deposits, which appear dissimilar figures and intends to track down whether they fulfilled their tax liabilities. Mr. Christodoulou said that this is subject to the government’s policy and the Inland Revenue Department.
Mr. Christodoulou is in favour of a tax exemption but rejects the provision of “full tax amnesty”. “The government must lure these funds back to the island. It is important, however, not to give the impression that trespassers are awarded”, he concluded.
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