The House commerce committee expressed its opposition on Tuesday to the EU’s Common Consolidated Corporate Tax Base (CCCTB) because it would affect the island’s flexible tax environment.
Chairman of the committee Angelos Votsis said adopting the directives would have effects on the Cypriot economy since it would affect the flexible tax environment Cyprus provides to corporations.
Votsis said there was a risk of companies leaving the island.
Cyprus used to have the UK as an ally in opposing the CCCTB, but the Brexit vote has changed the state of affairs.
There was the option of a veto, he said, but it was advisable before using it for a country to strike alliances so that it would not be singled out and isolated.
Votsis said the committee was told that the government was also planning to react.
According to the EU, the CCCTB is a single set of rules to calculate companies’ taxable profits in the EU.
With the CCCTB, cross-border companies will only have to comply with a single EU system for computing their taxable income, rather than many different national rulebooks.
Companies can file one tax return for all of their EU activities and offset losses in one member state against profits in another.
The consolidated taxable profits will be shared between the member states in which the group is active, using an apportionment formula.
Each state will then tax its share of the profits at its own national tax rate.
Akel MP Costas Costa said his party was concerned because adopting the new rules would have catastrophic consequences for the economy.
40 Comments
Wanderer
February 1, 2017 at 20:37Stop feeding the EU bureaucratic beast! Cyprus should follow the UK and go its own way.
Wanderer
February 1, 2017 at 20:35CyExit now!
plexor
February 2, 2017 at 12:20Dear Wanderer, exactly such reactions like yours, the 2 MPs, want to cause. To do the dirty on the EU or others and simulate concurrently the defenders respectively the lawyers of CY, is a typical misleading hypocricy of politicians. Aim: vote catching.
The quote of Votsis “catastrophic consequences for the economy”, Votsis does even fear-evoking, but he cannot explain, why. Cyprus-mail should maybe ask him.
Wanderer
February 2, 2017 at 20:32That undemocratic bureaucratic tyranny of the EU does not deserve any other reaction.
GSP
February 1, 2017 at 16:39I just love that term “the flexible tax environment Cyprus provides to corporations.”
What a nice way of describing how the elite pay whatever, whenever, they wish.
peemdubya
February 1, 2017 at 17:14You beat me to it, I nearly fell off my chair laughing at that phrase – you have got to hand it to them for their sheer brass-neck, haven’t you?
plexor
February 1, 2017 at 15:33“Akel MP Costas Costa said his party was concerned because adopting the
new rules would have catastrophic consequences for the economy.”
This quote of MP Costa shows, that he takes CYs tax stealing via post box companies from other countries respectively living on the expenses of others as the most normal. The new rules would not have catastrophic consequences for the economy, only for the tax stealing, a ruthless, states-organised fraud of CY against nearly the whole world. Besides Costa and Votsis are on the NPL-list with outstanding NPL, published in year 2015 by politis-news – cleptocrats feels obviously concerned, when the stealing comes to an end.
plexor
February 1, 2017 at 15:03EU tax rules could be catastrophic for Cyprus say MPs
Why? Catastrophic, because CYs tax stealing (profit shifting, 12.5 % corporation tax für Cyprus plus income for accountants plus 350 € yearly registrar fee and thats it) with post box companies, here described as “island’s flexible tax environment” and without having anything elso to do with such post box companies, would be finished? Besides CY lures foreigners in addition with an 2.5 % “Intellectual Property tax IP”, similar to the former Lux-model. The quote “tax stealing” for CY was created from other EU politicians, who know, what goes on in CY.
“Votsis said there was a risk of companies leaving the island.” Don`t worry, Mr. Votsis, companies from the domestic market will not leave, only the tax stealing with post box companies would come to an end. Maybe one should inform the MPs, that the CYs offshore times endet in year 2004, with the entry to EU.
Arnt Otto Østlie
February 1, 2017 at 12:49The best way to fight tax evasion by multinational companies is to present them with the same tax regime in all countries.
Mist
February 1, 2017 at 12:08Very interesting use of the expression “flexible tax environment”. Does this mean compliance with money laundering regulations. No, they will leave the EU sooner than loose personal revenue flow. New Block, UK, Greece, Czech Rep & Cyprus South.
dave
February 1, 2017 at 11:59All the Cypriots I know are hard working
It is not their fault that banking spivs wrecked the economy by betting, and losing, the ranch, gambling on Greek Government bonds
Russell Livingstone
February 1, 2017 at 11:04pay your taxes ,stop avoiding we will not keep bailing you out
Gressy1971
February 1, 2017 at 17:57If you are British, you didn’t bail out Cyprus.
Neroli
February 1, 2017 at 10:12Join us in Brexit!
charlie
February 1, 2017 at 10:46But don’t forget to pay your EU loans…;)
Neroli
February 1, 2017 at 11:10I was going to add that!!?
Jeremy Rigg
February 1, 2017 at 10:01Yes it will be catastrophic for Cyprus………….either abide by Brussels’ rules or get out. Simples.
Pullaard
February 1, 2017 at 09:57Cyprus is not alone. Even EU stalwart Belgium is losing multinational monies hand over fist. An article just two days ago stated that, in preparation for CCCTB and being forced to scrap previous tax incentives, in recent years the country has lost 144 billion euros income from the likes of Danone, BP, Ikea, Philips, ArcelorMittal and HP. And people still wonder why Brexit is proving so popular?
Alexander Reuterswärd
February 1, 2017 at 08:11This is only fair, a company should be taxed correctly in the country where they actually operate and not a mailbox. Clearly bad for all lawyers in the government…
Kurtz
February 1, 2017 at 09:27& Forex 😉
Alexander Reuterswärd
February 1, 2017 at 17:58That will cost a few hundred jobs in Limassol…
Kurtz
February 1, 2017 at 19:22and decimate large local banking deposits…….
Joy16
February 1, 2017 at 07:20We pay all our taxes. is very high now the taxes. we have book for tax. what is more tax for? for the EU? what have the EU ever done for us?
charlie
February 1, 2017 at 10:48hum…you pay all your taxes??? since I’m in this island, 95% of the transactions I’ve made were in cash….gimme a break
Russell Livingstone
February 1, 2017 at 11:08exactly
Russell Livingstone
February 1, 2017 at 11:07you pay all your tax’s –maybe you do but I have been in Cyprus plenty times and I know people get paid for work and it goes straight in their pocket –stop whinging and help yourself,
Joy16
February 1, 2017 at 13:22when Cyprus republic join the EU in 2003, we were the only country to pay in with money. all the other countries took money out, yes? is not good we pay and pay and pay the EU all the time. my cousin in Athens, he has half the salary now that he had 10 years ago. and only 2 jobs, not 4.
is not work now for to make business like 10 years before.
these American steal all the money.
make Europe pay for trillions of American losings
why we pay? who is the king now?
GSP
February 1, 2017 at 16:36Cyprus paid into the EU?
Cyprus is in debt to the EU for billions, have you been asleep for the last five years?
Joy16
February 1, 2017 at 19:21Eh what good is like this? Cyprus small country. EU very big. never the English pay the rent for the bases here. why like this? If the EU want Cyprus, they must to pay.
GSP
February 1, 2017 at 20:53The EU do not want Cyprus, Cyprus wanted the EU. Cyprus asked to join.
And if Cyprus is a small country, why did it need to borrow so much money?
Joy16
February 2, 2017 at 00:11Eh la.Demetris Christofias and his friends help themselves for years. then Nicos Anastasiades get the key to the safe, and they find oh, a big hole in the floor. outside, no water in the lakes. in the North, a big mess with the TCs.
It make better if theis man had stay home in bed for 4 years than did anything.
then they have the BOC man who make sell the Greek bonds that was no good, before there came the problems.
then another man, for the 1% commission, made to BOC to buy them back again. and Pu! big problems.
this man for his pocket sell the country into the problem of March 2013.
Nicos have nothing to fight the EU with. he have to steal all our money. is no other cash in the country. or we make bankrupty. l hope one day, he will pay back, eh? is big mistake.
GSP
February 2, 2017 at 08:34Is that you, Manuel?
Joy16
February 2, 2017 at 16:06no. Manuel, he die. last years. Mr Fawlty, he say, is right.
Alexander Reuterswärd
February 1, 2017 at 18:01A number of countries pay more than they get, Cyprus has never been the only net contributor
Gressy1971
February 1, 2017 at 17:58Get your English spelling right Livingstone – taxes not tax’s.
disqus_ZPlOdQqScB
February 1, 2017 at 01:05Why will make the tax dept sort out their mess once and for all, more importantly is setting off losses against profits.
Russell Livingstone
February 1, 2017 at 11:13you earn money pay the tax like we do pay as you earn best way —you whinge constantly about everything you expect other countries to help you ,Cyprus has plenty income from holiday makers –where does that go ,the e u gives you grants to fix your roads ,the uk government maintains the bases for which you get plenty money in rent and local jobs —–all the money you get from ripping off the British tourists should be plenty so stop moaning we are fed up listening to you
Gressy1971
February 1, 2017 at 18:00Good grief – wouldn’t it be wonderful if British people learned the rules of English properly? What do they teach in your lousy British schools?
Olliebaby
February 1, 2017 at 22:20No rent has been paid since at least 1974. The bases are used for military operations and are not some holiday camp to be maintained. Ripping off the British tourists, no-one is forced to come. Saying that the British have been using and ripping Cyprus off for years.
Joy16
February 2, 2017 at 00:15yeah sure. no rent they pay for so many years. why like this eh? who say they can stay like this? not to pay the rent to the government eh? why the government no take the money eh?