Cypriot directors dodge taxes

Cypriot directors and self-employed are accused to be dodging taxes by declaring their income below the tax-free level of CYP 10.000 a year, according to figures presented by the Inland Revenue at the House Finance Committee meeting.

Inland Revenue Director Georgros Poufos told Deputies that 6.596 directors of private companies declared salaries up to CYP 10.000 during 2002 and paid taxes of CYP 3.95 per person. Poufos added that 16.538 self-employed declared their salaries below CYP 10.000 a year, paying a total of CYP 37.259, or CYP 2.25 on average per person.

On the other hand, according to the IR data, salaried persons employed in the private sector, government and semi-governmental agencies contributed CYP 27 mln in payroll taxes as many declared salaries between CYP 10.000 to CYP 20.000.

Professionals such as lawyers, auditors and doctors contributed a total of CYP 3.54 mln in taxes. Poufos told Deputies that out of 20.000 self-employed persons, only 994 declared salaries in excess of CYP 20.000.