The Plenum of the Parliament passed laws to extend the deadline for submitting tax returns for the tax year 2020 by four months, due to the difficulties created by the pandemic and the war in Ukraine.
The relevant legislative proposals were submitted on behalf of DIKO by MP Panicos Leonidou. 35 MPs voted in favour and the three EPP MPs voted against.
The purpose of the first law is to amend the Law on Certification and Collection of Taxes, so that the deadline for submitting company tax returns (TF4) for the tax year 2020 is postponed from 31 March 2022 to 31 July 2022, without imposing any burden.
The purpose of the second law is to amend the Tax Confirmation and Collection Act so that the deadline for filing a tax return by a person required to keep books and records and prepare accounts audited by an independent auditor (TF1) for the tax year 2020 is postponed from 31 March 2022 to 31 July 2022, without imposing any charge.
Leonidou in his statement before the Plenary noted the need for relief for both small and medium-sized enterprises and individuals in this difficult period facing the consequences of the pandemic and the impact of Russia's invasion of Ukraine and stressed the importance of any proposal towards even small relief for those who are unable to meet their obligations to the state.
DISY MP Onoufrios Koulla expressed the party's agreement with the legislative proposals, noting that there were practical issues with distance working in accounting offices. He agreed that the Tax Department should prepare returns in a much more timely manner, but said that the government was also hit by coronavirus. He also said that companies are already prepaying the tax they have to pay at the end of next year. He added that the self-tax has improved things for companies however they are further behind compared to individuals. He also said that with the tools that the Parliament gave the Tax Department after the 2013 crisis, in recent years, before the pandemic started, there was an increased tax collection capacity.
AKEL MP Aristos Damianou said that despite the existing long-standing pathologies of the Tax Department, AKEL sees the big picture, namely that a large part of society is on the edge in terms of its finances. The postponement of the deadline for submitting tax returns, he added, is not related to the state's tax-collecting capacity, but, he said, to the handling of the issues of the pandemic and the war in Ukraine. He added that the proposed law is in the right direction and expressed hope that the Government would not stand on formalities and would not refer the law back.
ELAM MP Sotiris Ioannou expressed the party's support for the proposed laws, noting that the invasion of Ukraine and the health crisis have created many problems for small and SME businesses, with scenarios not being favourable and no one having the impression that better days are ahead. He noted that the proposed law does not affect the state's revenues but prolongs their collection. He added that it is quite important to keep businesses in Cyprus for the future of the country's economy. Referring to tax evasion, he said that the Parliament should open the debate and close it with substantial measures.
EPP President Marinos Sizopoulos noted the responsibilities of the Tax Department for the delay in opening the online portal for submission of tax returns and said that the question is how to upgrade the operation of the Department. He said it is not an extension that is needed but putting pressure on the Department of Taxation to accept tax returns promptly and process them. He said they are voting against the proposed legislation since they feel the contribution is less than the negative impact. He said that with the prolonged delay in filing the returns, there is also a delay in processing the determination of the final taxable amount and noted that through the delay the state may lose revenue. He added that there are other measures to support citizens and businesses.
DPA - Democratic Forces Cooperation MP Alekos Tryfonidis said that the proposed law is in the right direction as it assists businesses and individuals affected by the pandemic and war. At the same time, he noted that now that the positions of Tax Assessor and Assistant Tax Assessors are being liberalized, there must be a crackdown on tax evasion and tax avoidance and the phenomenon that in 2022 the 2015 tax returns will be sent out.
The Member of Parliament of the Movement of Ecologists - Citizens' Co-operation Stavros Papadouris said that there are several shortcomings, such as the fact that while access to TAXISnet should have been given a year ago, it was finally given in December 2021. However, he noted that "we are facing real war events" and the last thing mostly foreign companies whose countries are affected care about is sending in their tax returns. For this reason, he said they are voting for the proposal.
Source: CNA
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