Today's session continued the discussion of the different legislative proposals that would create the institution of reviewing financial statements for micro companies, relieving them from the increased administrative costs of submitting audited financial statements currently in force. The difference between the legislative proposals lies in the level of eligibility criteria for small companies and in particular their annual turnover and balance sheet. The criteria range from €200,000 in turnover and corresponding balance sheet size to €700,000 in turnover and €1 million balance sheet size.
"We want to reduce costs for micro businesses at a time when costs are increased by other factors but at the same time not to reduce incentives against tax evasion." DISY MP Marios Mavridis said in statements after the meeting,[/B] adding that "we are trying to allay the concerns of the Tax Inspector, so that on the one hand there is accountability and on the other hand the phenomenon of tax evasion is avoided."
He said the initial provision of the proposed law was for businesses with a turnover of up to €700,000, but added that there would be consultation with the relevant bodies.
In his own statements, AKEL MP Kostas Kostas said that there is a willingness to push the whole issue forward, but there are differences with regard to the amount in terms of turnover and balance sheets.
"For us to move forward we need the executive to help us and today, unfortunately, ministries or state agencies have tried to put some obstacles in our way," he added.
[P COSTA criticised the fact that the directive came from 2013, nine years ago, we had harmonised in 2015 as Parliament and from 2015 we expected the regulations to come in to help micro enterprises, but no bill was tabled by the executive, he said.
DIKO MP Christiana Erotokritou, who is a co-author of a draft law along with DISY MPs Kyriakos Hatzigiannis, Onoufrios Koullas and Nikos Figs, provides for the introduction of a simplified procedure for companies with a turnover of up to €200.000 and a corresponding balance sheet size.
He said that the Tax Department, the Central Bank and the Ministry of Finance also agree with this position.
"Our view expressed in the Trade Committee," he explained, "is that it would be better, since it is a matter of introducing a new institution, a new procedure, albeit belatedly in Cyprus, to take small, conservative, careful steps so as not to create big fluctuations or big changes, to be able to monitor the development of the implementation of the new procedure along the way and accordingly increase or decrease the amount of turnover or balance sheet or both."
On behalf of the EPP, Elias Mirianthous said that the proposal he is co-authoring with DISY's Mario Mavridis and DIPA's Michalis Yiakumis and Alekos Tryfonidis, provides for companies with a turnover of €700.000 a year and a balance sheet of up to €1 million, while the European directive proposes for companies with a minimum turnover of €350,000 and €700,000 in assets.
"There will undoubtedly be a discussion to find a compromise solution so that we can go unanimously," he said, adding that the aim is to relieve small businesses of the increased administrative costs.
Finally, Michael Yakoomi, said the procedure envisages the preparation of financial statements by the review method rather than audited accounts, which eases the cost for a small business and helps smaller audit firms, which are at a disadvantage against large audit firms, he said.
Saying that their proposal is for companies with a turnover of €700,000 and a balance sheet of €1 million, Yacoumi added, however, that "in the context of finding a consensus, we are open to discuss the amount of the amounts."
He finally noted that the same should happen for self-employed persons, with a review limit from €70,000 to €150,000 and above that amount audited accounts should be prepared.
As mentioned, at the next meeting the Committee will consider new texts and recommendations, while information was requested from the Tax Department and the Ministry of Commerce to discern what percentage of companies will be affected depending on the criteria amounts set.
Source: CNA
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