President Nikos Christodoulides is facing renewed pressure to demonstrate his independence from former president Nicos Anastasiades after the anti-corruption authority’s findings in the Mafia State case were formally expanded to include scrutiny by the tax commissioner, Sotiris Markides.

The authority’s findings will, for the first time, be transmitted to the tax commissioner under recently approved legislation establishing direct institutional cooperation between the anti-corruption body and tax authorities.

The move follows a proposal advanced by Alma MP Irene Charalambides, who has argued for years that corruption and money laundering investigations should automatically trigger targeted tax audits.

The development significantly broadens the scope of the inquiry stemming from the authority’s report, which recommends criminal investigations into the law firm Nicos Chr. Anastasiades & Partners, several of its partners, former senior officials and former president Nicos Anastasiades himself.

Tax authorities will now examine whether any offences relating to inaccurate tax declarations, false information, undisclosed income or other tax violations may have occurred.

According to the legislation, investigators may examine financial activity dating back as far as 12 years from the commencement of an inquiry, while authorities are also empowered to scrutinise accounts held abroad.

Charalambides welcomed the latest development, arguing that the involvement of the commissioner represents a practical test of reforms intended to strengthen accountability mechanisms.

Speaking to Sigma on Thursday, she said she felt “absolutely vindicated” by findings which she claimed reflected concerns she had been raising for years regarding institutional decay and political patronage that corroded the rule of law.

The report itself centres on allegations contained in the book Mafia State and examines claims involving offshore structures, golden passport approvals, money laundering concerns and the conduct of public authorities responsible for investigating those matters.

A central recommendation concerns the law firm Nicos Chr. Anastasiades & Partners, which the authority says should be investigated for possible money laundering offences.

The firm, which is partly owned by the daughters of former president Anastasiades, is alleged to have facilitated financial transactions involving offshore entities connected to shell companies operating through the Caribbean.

One section of the report revisits allegations first raised in 2019 by the organised crime and corruption reporting project (OCCRP).

Those allegations linked the law firm to transactions involving shell companies and financial transfers amounting to hundreds of millions of dollars.

According to the authority, records examined during its investigation revealed transactions worth approximately $220 million involving companies registered in Caribbean jurisdictions and financial arrangements that included capital injections, related-party loans and interest-free restructuring agreements.

The authority concluded that such transactions displayed characteristics commonly associated with money laundering and warranted further scrutiny.

The report is also sharply critical of the handling of the matter by the anti-money laundering unit (Mokas).

A second major strand concerns revelations contained in the Pandora Papers, which exposed offshore financial arrangements involving politically connected individuals and wealthy foreign nationals.

The authority’s report examines the citizenship applications of Russian businessmen Leonid Lebedev and metal magnate Alexander Abramov, both of whom obtained Cypriot citizenship through the investment programme.

Investigators concluded that approval procedures were completed despite significant concerns regarding due diligence and verification of the origin of funds.

Particular attention is paid to documentation connected with Lebedev’s naturalisation application.

The report alleges that partners of the Anastasiades law firm signed official declarations stating they were not acting as representatives of the applicant despite simultaneously holding positions connected to companies and structures managing his assets.

The authority further alleges that financial benefits accrued to the law firm through its relationship with Lebedev, including involvement in trust arrangements managing substantial deposits and assets.

Investigators also point to sworn testimony given before the Limassol district court by law firm partner Phanos Philippou in 2012.

According to the report, documentary evidence appears inconsistent with statements made under oath concerning the existence of assets held in Cyprus on behalf of Lebedev.

As a result, the anti-corruption authority recommends criminal investigations into alleged perjury and money laundering offences involving the firm and several of its partners.

It also recommends that former president Anastasiades be investigated for possible influence peddling and abuse of power relating to the approval of citizenship applications.

Charalambides argued that the case now presents a significant test for the current administration and the institutions responsible for pursuing any further investigations.

“If the president wants to run for re-election and have a chance of winning, he must in this specific case prove that he is not dependent on Mr Anastasiades,” she said.

She also expressed concerns about the operation of both the anti-corruption authority and the legal service, arguing that structural weaknesses remain within the current system.

Referring to the decision of the attorney-general, George Savvides, and his deputy, Savvas Angelides, to recuse themselves from handling matters connected to the case, she said the situation drew attention to the wider concern when officials are called upon to examine allegations involving former administrations to which they may be compromised.

Charalambides called for the appointment of independent investigators from abroad to examine the findings, arguing that such a move would strengthen public confidence in the process and help eliminate suspicions of interference or concealment.