Efforts are underway in Cyprus to shorten the lengthy procedures surrounding tax disputes, with new legislative proposals tabled in parliament aiming to provide swifter and more predictable outcomes for both the state and taxpayers.

MP Fotini Tsiridou has submitted three bills targeting the acceleration of decisions in hierarchical appeals before the Tax Tribunal and appeals lodged with the Administrative Court. The proposals seek to cut the decision-making time in half, from the current one year to six months for the Tribunal, and to impose a one-year deadline for the Administrative Court to issue rulings on tax-related cases.

According to Tsiridou, the current framework often results in drawn-out processes, with some tax cases dragging on for years without final resolution. This uncertainty, she argued, undermines legal clarity, discourages investment, and damages both state finances and business planning. “Timely tax collection is a fundamental prerequisite for a healthy economy and stable public finances, while businesses and individuals must know their obligations within a clear and reasonable timeframe,” she noted.

The bills amend the VAT Law and the Law on Assessment and Collection of Taxes, making the six-month deadline binding for hierarchical appeals. Tsiridou also proposes amending the Law on the Establishment and Operation of the Administrative Court, so that tax-related appeals are decided within one year of filing. She emphasized that these reforms would enhance legal certainty, increase efficiency in the tax system, and protect public interest.

The lawmaker further stressed the importance of predictability in attracting investment, pointing out that prolonged disputes can deter both domestic and foreign investors. Establishing strict timeframes, she said, aligns Cyprus with best practices in cases of major public interest, where expedited procedures are already in place.

Parliamentary data shows that since its creation in 2000, the Tax Tribunal has received 506 appeals worth a combined €218 million. Of these, 230 have been decided, with nearly a third partially or fully in favor of taxpayers.