Cypriot government to combat tax evasion

The government aims to combat tax evasion by companies and self-employed taxpayers and subsequently increase its revenues by applying a new action plan Minister of Finance Charilaos Stavrakis said in statements to CNA.
The Inland Revenue Department has recently applied the plan, thus setting the government on the right track regarding the increase of its revenues and the elimination of tax evasion.
Stavrakis expressed contentment over the fact the plan has been applied, stressing that “we are on the right track.” He also said that he would monitor the results of the plan every fifteen days.
“We are entering a period of slowdown of the economy that affects negatively the VAT income, inland revenues and real estate taxes,” the Minister said and added that it is necessary to make every effort to cover the gap created by the decrease in state revenues.
Stavrakis pointed out though that the growth rate in 2008 is estimated to reach 3.6%-3.7%.
Taxes due to the Inland Revenue Department by companies amount to 500 million euro, Stavrakis said, adding that part of it might be impossible to collect since a number of companies might have gone bankrupt or terminated operation.
“Still there is a large amount of money to be collected”, he said.