Cyprus & World News

Parliamentary Committee sets priorities to secure fifth tranche

27 May, 2014

The Parliamentary Committee on financial and budgetary affairs has set priorities for the implementation of all prior actions required for the disbursement of the fifth bailout tranche, based on a document sent by the Finance Ministry.
According to the document, by the 5th of June the Parliament must approve the establishment and operation of a fiscal council and pass a bill providing for the integrating of the existing Inland Revenue Department and the VAT Service.

Until June 19 the House should vote for a bill so that not paying withholding taxes is a criminal offence and tax fraud is prosecuted as a criminal offence, enact the necessary legislation to establish self-assessment for all income taxpayers by changing from a pre-assessment verification of income tax returns to post assessment audits selected on the basis of risk and pass a legislation aimed at strengthening powers by the tax authorities to ensure payment of outstanding tax obligations, including by providing power to garnish assets or prohibiting the alienation or use of assets, including property and bank accounts, by the taxpayer.
The Parliament should by the end of June enhance the effectiveness of competition law enforcement by adopting the necessary amendments to the legislation on mergers and antitrust.

Also by the end of June the Government must, inter alia, bring before the Parliament a bill reforming immovable property tax and another one introducing the Guaranteed Minimum Income.