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Action plan for Cyprus tax transparency

04 December, 2013

The government and the private sector are drafting an action plan to reverse the negative climate surrounding Cyprus on taxation transparency, following the reent unfavourable report by the Organisation for Economic Cooperation and Development (OECD).
President Nicos Anastasiades hosted a meeting with the participation of representatives from the Ministry of Finance, the Inland Revenue Department, the Unit for Combating Money Laundering, the Institute of Certified Public Accountants, the Bar Association and the Central Bank.
Speaking after the meeting, ICPAC president Yiannos Charilaou said the purpose of the meeting was to take decisions on the next steps to restart the economy and restore credibility to Cyprus.
He said that decisions were taken and that an action plan would be drafted by Friday to avoid the possible inclusion of Cyprus in the black list of other countries, such as Russia.
Meanwhile, Cyprus and India held a series of consultations in New Delhi on issues concerning exchange of information and taxation. The meetings addressed the issues of an effective exchange of information between Cyprus and India and the long pending renegotiation of the Double Tax Agreement (DTA) between Cyprus and India which is in force as from December 1994.
Both sides agreed that, the circumstances that have caused India to notify Cyprus as a “notified jurisdictional area” have been addressed by agreeing to adopt the provisions of the new Article 26 of the OECD Model Tax Convention relating to exchange of information, and improving the channels of communication. A new DTA is expected to be finalised soon.