Cyprus Mail

Government collects €87 million in back taxes

File Photo: tax office

The government has to date collected around €87 million from a scheme allowing the settlement of taxes in arrears.

According to data cited by the Cyprus News Agency, so far 3,500 applications have been approved for the scheme, for the overall amount of €108 million owed to the state. However, factoring in the deductions offered as an incentive, the actual amount collected comes to €87 million.

Of the 3,500 cases, 2,500 related to lump-sum payments, which corresponded to €70 million in arrears. With the deductions on these, the state is to collect about €53 million.

Under the scheme, people may choose to settle their debts by paying a single lump sum and benefit from a 95 per cent exemption from the additional financial charges imposed on them.

Alternatively, taxes in arrears can be paid in instalments. Overdue debts under €100,000 can be paid in 54 monthly instalments, whereas those exceeding €100,000 in 60 instalments. Taxpayers opting to pay in instalments benefit up to a 50 per cent reduction of penalties, such as interest, depending on the amount due.

Those wishing to settle their overdue debts through the scheme must have filed their tax returns until 2015.

Initially the deadline for the scheme was October 3 but last week parliament voted to extend it to January 3, 2018.

The Tax Department continues to receive applications via the government gateway portal known as Ariadni.

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