Article by Andreas Neocleous and Maria Kitromilidou
On the 9th of January 2001, the Minister of Finance of the Republic of Cyprus introduced to House of Representatives the proposed changes to the existing tax system. The proposals took the form of a preliminary document titled ‘Tax Reform 2001’. The final draft will be presented and for discussion in Parliament after the Parliamentary elections due in May 2001.
Nine years after the last tax reform, (see Tax Planning International Review, June 1991) the Government justifies the proposed changes as being necessary (a) to fulfill Cyprus’ European Union (EU) commitments especially in the context of custom duties and harmonization of Cyprus tax practices with the EU, (b) to satisfy the OECD requirements for the elimination of harmful tax practices, while at the same time maintaining its antagonistic position as an international business center, (c) to promote social justice, (d) to create a simpler and more efficient taxation system
