Two proposals for extending the deadline for submitting tax returns for 2020 for companies and individuals are proposed by the Finance Committee of the Parliament, due to the general problems created by the pandemic, but mainly due to the consequences of the invasion in Ukraine. According to the proposals, this deadline will be extended until 31 July 2022 instead of 31 March.
The law proposals submitted by DIKO are supported by all parties that attended the Committee's meeting as well as the Association of Certified Public Accountants of Cyprus (ACCA). However, on behalf of the executive, disagreement was expressed with the continuous extensions in the preparation of tax returns, so as not to affect the revenue flow of the state and not to discourage the timely submission of returns every year.
On behalf of the Ministry of Finance, it was mentioned that Cyprus was granted a fifteen-month extension in the submission of tax returns which is one of the longest in the EU and that they do not agree that the practice of extensions should continue. The view was also expressed that there are no longer reasons for not filing returns in relation to the pandemic, while the war that happened a fortnight ago is not considered as criteria for not filing.
A representative of the Tax Department said that they also do not approve of extensions being given but want there to be compliance. He added that the four-month extension given was enough and that companies should have been ready by now.
On behalf of the FCC expressed agreement with the extension, stating that the four months given is not enough when the pandemic continues along with the crisis in Ukraine. He said their Russian and Ukrainian clients represent a large percentage of foreign interest companies and their large tax and income figures have been greatly affected at this time. He added that many of their clients affected by the war do not have tax compliance among their priorities and many of them cannot be traced.
The Chairman of the Committee, DIKO MP Chrysis Pantelides, in his statements after the Committee's conclusion, expressed satisfaction that all parties that participated in the Committee's meeting support the Democratic Party's Law Proposals, which will be submitted to the Plenum for adoption as soon as possible.
DIKO, he said, tabled the proposal bearing in mind the difficult situation in which small and medium-sized enterprises continue to find themselves due to the prolonged health crisis, but also due to the uncertainty and the consequences of Russia's ongoing invasion of Ukraine, which inevitably affects all sectors of the Cypriot economy.
He also complained that in this particular case the State did not apply the deadlines it was obliged to do so. He noted that the law as it stands today gives a 15-month deadline for submitting a tax return. However, he said, the state did not upload the relevant return on TAXISnet until last December. So, he said, it was the responsibility of the state that the 15-month deadline was effectively reduced to 4 months. He expressed surprise at the negative attitude of the state.
DISY MP Onoufrios Koulla, speaking to the committee, expressed the view that there are objective reasons why this extension is needed, while he said he does not consider that the state's revenues are affected.
AKEL MP Christos Christofides said that at the moment we have a crisis within a crisis which is causing serious complications throughout Europe and especially in Cyprus because of the relations with Russia and Ukraine. He was in favour of the proposed law, except, he said, in case the state would face serious budgetary consequences.
EPP MP Elias Mirianthous was unreservedly in favour of the proposal, noting that the only revenue that the state would effectively lose would be the 100 euro fine for failure to pay tax returns on time. He also said that many problems have already been created in accounting offices due to the pandemic and working from home.
DIPA - Co-operation of Democratic Forces MP Alekos Tryfonidis also said that the proposal is in the positive direction.
Stavros Papadouris, Member of Parliament of the Movement of Ecologists - Citizens' Co-operation, said that the cost of this proposal is very small in order to facilitate these people in the midst of war. In this way, he said, accounting firms will try to assist their clients and keep them for the future, with much greater benefit.
Source: CNA
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