Two bills submitted to the Parliament aim to address a significant gap regarding the tax liabilities of citizens in European Union countries who have accounts or assets in Cyprus. These bills ensure that no Cypriot taxpayer with pending tax issues can escape liability if they possess assets in another EU country.

Specifically, if a Cypriot citizen evades taxes or has unresolved tax issues but owns assets in an EU country, the Tax Department will have the right to request information from the country where the assets are located to secure the owed tax amount. The same applies to any European citizen with tax debts in their home countries; their respective tax authorities can request information from Cyprus regarding any accounts in Cyprus. Any tax owed in countries like Belgium, France, Italy, Spain, etc., will then be payable.

According to the explanatory report signed by Attorney General Giorgos L. Savvides, bank secrecy will only be lifted for providing information to European authorities responsible for collecting claims and acting in this manner.

The bills also establish a procedure for providing information from other member states for tax collection, customs duties, and other measures.

According to the bills, the Cyprus Tax Authority must provide the requested information in writing or electronically within the specified time frame.

If any individual, Cypriot or European, fails to comply with their tax obligations either in Cyprus or abroad, they will face administrative sanctions - a fine of up to €10,000.