Statement of Tax subcommittee delegation leader after mission to Cyprus
Following the conclusion of the Tax Matters subcommittee's delegation to Cyprus, the delegation leader, Kira Marie Peter-Hansen made the following statement.
"Cyprus has for many years been in the spotlight for facilitating complex corporate structures, which were misused for tax evasions and tax avoidance. We see that there is a political will not to be the black sheep of Europe. Positive reforms are taking place, following European and international reforms. Legislative changes are however not enough, if Cyprus does not dedicate sufficient resources to enforcement. Still, I am concerned that the non-domiciled tax regimes and golden visa are still abused. Cyprus must find the right balance between attracting foreign investments and fighting tax evasion and money laundering.
"In the context of a difficult economic situation, Cyprus is moving forward with a comprehensive tax reform to make its economy more competitive. We hear the signals that EU legislation needs to be simplified and streamlined, while not going backwards on the tax fairness agenda. One major issue that still needs to be addressed is the increasing cost of housing, often linked to tax measures attracting wealthier individuals."
Background
The delegation was in Cyprus between Tuesday and Wednesday. It composed of four MEPs, Ms Peter-Hansen (Greens/EFA, DK), Michalis Hadjipantela (EPP, CY), Kinga Kollár (EPP, HU), and Pierre Pimpie, (PfE, FR).
The delegation met with the President of the House of Representatives and Members of the Standing Committee on Financial and Budgetary Affairs, as well as the Deputy Commissioner for Taxation. They also met civil society representatives and researchers, trade union representatives, accounting and tax consulting firms, and the Employers and Industrialists Federation.
Contacts:
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John SCHRANZ
Press Officer (MT)