Experts put the proposed tax reform under the microscope

The question of whether the planned tax reform meets the needs of the economy and the professional services sector was examined by well-known figures in the sector during the 7th Cyprus International Tax Conference.

The above, as well as the key ingredients of success, were discussed in a panel entitled ‘Does the planned tax reform address the needs of the industry and the profession? The key ingredients for success. A debate by ICPAC, CBA Representatives and other Tax Experts.’ The 7th Cyprus International Tax Conference took place in Nicosia on 20 February.

The featured panelists in the specific discussion were Christos S. Christodoulou, Managing Director, CSC Christodoulou Ltd, Maria Gregoriou, Vice President of the Tax Planning Committee, Cyprus Bar Association, Andreas Karaolis, Chairman - Tax Compliance Committee, Institute of Certified Public Accountants of Cyprus, and Andreas Papagavriel, Director - Tax Services, Baker Tilly South East Europe.

Christodoulou expressed the position that the existing tax system causes inequality between foreigners and Cypriots. According to him, at the present stage, an imbalanced competition is being created. Therefore, according to Christodoulou, the reform needs to take into account and tax based on various sectors, activities, etc. He also emphasised the need to simplify the system.

Gregoriou said that since it is a comprehensive tax reform, "We expect a competitive model and not just a ‘reform’.” The important thing is that the existing legislation is written with simplicity, she said, stressing the importance of cooperation between the competent bodies and the legal service.

Karaolis noted that the effort does not touch on digitisation, which he considers necessary, both in terms of the procedures and the image that the country wants to transmit to the outside world and to investors.

At this point, he pointed out, it is premature to express opinions in the sense that there are many parameters that need to be taken into account and that the results from the studies that are in progress should be taken into consideration first.

On his part, Papagavriel said that in order to make Cyprus the best place to live, work and operate businesses, emphasis needs to be placed on economic development with a redirection to other sectors.

"Incentives for local investors and an increase in peoples’ income, tax reduction and green taxation are needed," he said, among other things, stressing the importance of the incentives being such that money is reinvested within the economy.

The round table discussion was moderated by Kyriakos Iordanou, General Manager of the Institute of Certified Public Accountants of Cyprus (ICPAC).

(Source: InBusinessNews)