Tax amnesty nets CYP 119 mln

The government has raised CYP 119 mln in revenue from the one-off tax amnesty offer for the declaration of secret amounts of income until end of December 2002.

Finance Minister Makis Keravnos revealed the final figure following a meeting with the Chairman of the Tax Declarations Office Andreas Theophilou. He said the total revenue amounted to CYP 119.4 mln, which means some CYP 2.5 bln of funds or sources of income were declared.

The first phase of the tax declarations ended January 31, 2005 at the flat rate of 5%. The second phase, whereby declarations were taxed at 6.5% continued until the end of February.

Keravnos also revealed that that the government booked CYP 50 mln in funds from the total tax amnesty as an extraordinary benefit for the 2004 state accounts, transferring the balance of CYP 69 mln to the 2005 accounts.

The state had already budgeted CYP 40 mln in extraordinary income from the tax amnesty in its convergence plan submitted to Brussels and officials made sure that most of the funds would be booked in the 2005 accounts to help in efforts to reduce the budget gap to 2.9% for 2005.

Theophilou also confirmed earlier reports that all the declaration forms submitted by the public for the tax amnesty would be destroyed, keeping only the reference number and amount paid details, which would only be issued if the person making the tax amnesty so requested.