MOKAS checks 8 tax amnesty cases

The Serious Fraud Office (MOKAS) is reported to be investigating eight cases that the Tax Declarations Office refused to accept during the tax amnesty period, on concerns that money laundering cases were involved.

House Finance Committee Chairman Aristos Chrysostomides revealed that out of the 22.326 declarations made by 19.320 persons, of whom 18.320 were individuals and 1280 legal entities, only eight cases were rejected due to money laundering concerns and their files handled to the police for investigation.

“There was a clause in the legislation on tax amnesty that if there were concerns that the proceeds of the money was from suspect sources, then the Tax Declarations Office could refuse to accept the applications and following court warrant, handle the cases to the police, something which has been done,” said Chrysostomides.

The total revenue from the tax amnesty, done in two periods and rates amounted to CYP 119.4 mln, for an average CYP 105.715 declaration and CYP 5.350 tax per applicant.

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.

During the first phase, CYP 1.43 bln of assets were reported as bank deposits, CYP 614 mln were reported to be held in property while CYP 220 mln were reported to have been spent for a total of CYP 2.27 bln.

During the second phase, 6.5%, CYP 28 mln were declared as held in the bank, CYP 49 mln held in real estate and CYP 15 mln on past expenditure for a total of CYP 92 mln.

All in all, CYP 1.46 bln were declared to be held as bank deposits or a 62% of the total, CYP 663 mln in property and real estate for a 28% share while CYP 235 mln or 10% were reported to refer to income already spent for a total CYP 2.36 bln funds declarations.

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.