Cyprus Investment Agency warns of dangers from lack of transparency

Cyprus Investment Promotion Agency President Christodoulos Angastinioits has warned that the treaties for the avoidance of double taxation signed by Cyprus and other countries could be in danger due to the lack of transparency in taxation purposes.

Speaking to the press, Angastiniots said Cyprus ranks 50th in the OEC forum for transparency for taxation purposes conclusions along with Seychelles, the British Virgin Islands and Luxemburg, adding that these conclusions will be adopted in the OECD meeting Jakarta on November 21-22.

"We will be given a short period of time to comply and we must rush again to correct things because with the current results, I regret to say, all those double tax treaties signed with fifty other countries will be in danger," he warned.

He said that the Cyprus Inland Revenue Department promotes queries received by other governments to the relevant sector, comprising Law firms, audit firms and fiduciary services, which failed or even avoid providing answers.

"Its time for the regulating bodies, the Institute of Certified Public Accountants of Cyprus, the Cyprus Bar Association and the Securities and Exchange Commission to be much more strict with their members "because negligence, indifference or bad practices of a few could destroy the services sector of the economy," he added.

He also revealed that India has nullified the double tax treaty with Cyprus on the pretext that it did not receive responses to the question it sent to the Cypriot authorities.

He noted however that this would not be the end of the world as the Cypriot authorities could renegotiate the treaty.