Increased Preventive Tax Audits Conducted Across Cyprus in High-Risk Sectors
The Tax Commissioner intensifies inspections as part of efforts to tackle tax evasion.
The Tax Commissioner is currently carrying out increased preventive tax audits across Cyprus, focusing on selected professional and economic activities. These efforts form part of a broader strategy aimed at risk management, impartial enforcement of tax legislation, and the identification and control of tax evasion.
According to information obtained by Brief, improving tax compliance remains one of the Tax Commissioner’s top priorities. Within the scope of his duties, he has found that non-compliance significantly hinders the achievement of fiscal goals set by the tax administration.
Competent sources explain to Brief that tax compliance involves, among other things, timely and accurate registration in the Tax Registry, the correct and punctual submission of tax returns, and the payment of taxes.
"The role of the Tax Department is to monitor and verify the accuracy of tax declarations and payments, and to take corrective measures by implementing the provisions of the law," they add.
As part of its tax compliance enhancement plan, the Tax Department has taken the following key actions:
First, it is improving tax legislation to make it more effective, aiming to unify functions and eliminate inconsistencies in legal interpretation.
Second, it is monitoring and, where necessary, enhancing the new digital tax platform (Tax For All), to support voluntary compliance and help taxpayers meet their obligations more efficiently.
Third, the Department is updating and enriching the Tax Registry using information and risk strategies developed internally, provided by taxpayers themselves, or obtained from other domestic and international sources.
Fourth, it is intensifying efforts to clear backlogs and conduct audits, including issuing tax assessments for previous years, resolving objections, confirming capital statements, and finalizing tax audits.
According to the Department’s organizational structure, the Debt Management and Enforcement Unit operates at a central level to oversee outcomes and manage debt-related cases.
