September 5th, 2010
Lawyers in Cyprus – Review – Cyprus Tax & Deficit – Completed on 25th July 2010. – Cyprus Lawyers
As per usual not all is going according to plan within the Cyprus governmental sector.
Proposed plans to tax the wealthy property investors and corporate businesses failed to materialize when a bill put forward to the house of parliament was rejected. The government planned to gain up to 100 Million Euros from taxing these wealthy individuals and companies to help with the struggling economic state. Thank God! As the UK government is taxing big companies and high profile business people and they have now left the country. This we have to avoid.
And now to make matters even worse for Cyprus economy, due to the countries high debt the EU has put sanctions of the government to reduce the countries debt by 2012.
Cyprus is not the only country facing sanctions, others were also placed these sanctions. However, now the government must find ways to clear the high deficit, which has arisen from too much expenditure, and it will definitely not come from the wealthy investor or corporate businesses.
If Cyprus fails to reach the required amount of 3% reduction in deficit by the specified time period, any EU funding normally available to our country to help the public state will be denied by the EU, and this can easily run in to the 100s of Millions. What a hard hitting blow that would be for us!
The government intends to cut many of the countries spending patterns and reduce the high wages of government officials, of which we are sure they will not cut enough to even make a slight dint in the amount required to reach.
It may be a good victory for property investors but somewhere along the line the tax payer will be paying in one way or another, we have no doubt about that. And a good example of this is the EU punishment for Cyprus not having Ecological power (wind, sun etc), and therefore, the electricity board increasing prices to pay the penalty.
We will be keeping a wary eye on this issue and you can rest assured we will keep you well informed, as this could affect all Cyprus citizens.
PUBLISHED BY A&G KOUZALI LAW OFFICE ON 25TH JULY 2010. http://www.lawcyprus.org/
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