A month-long campaign has identified businesses that didn’t hand out receipts or have approved cash registers and have showed discrepancies, the tax department announced on Thursday.
During the month of August, the department targeted 420 mainly tourism-related businesses. The inspections are part of the department’s new strategic planning which aims to increase voluntary tax compliance and will continue in September, deputy tax commissioner Sotiris Markides said.
Referring to the way they chose the particular firms they inspected, Markides said “it was a combination of high risk, the area and information that the department had.”
The official said the main problems identified were that companies didn’t use cash registers which are approved by law, and that after counting money cash discrepancies were discovered.
In fewer cases, no legal receipts had been issued.
The businesses were notified of the identified illegalities and were warned in writing to fix the problems.
The aim of the warning letter was to give taxpayers time to comply before another surprise visit by the tax inspectors.
“These campaigns also meet the wishes of citizens and consumers to ensure fair and equitable taxation and to reduce tax evasion,” he said.
The intention is to carry out the inspections on a systematic basis throughout the year and to expand them to other sectors.