Breaking news

Cyprus Tax Debt Surges to €4.05 Billion in Q1 2025 Amid Mounting Collection Challenges

by THEFUTURE.TEAM

September 3, 2025

Overview of Rising Tax Liabilities

In the first quarter of 2025, Cyprus’ overdue tax liabilities escalated to €4.05 billion, marking an increase of nearly €1 billion compared to the corresponding period in 2024. This figure, reported by the Tax Department to the House under article 9E of the Collection of Taxes Law of 1962 and the VAT Law 95(I)/2000, underscores growing fiscal challenges faced by the nation.

Detailed Breakdown of Direct Tax Arrears

The comprehensive report, delivered by Tax Commissioner Sotiris Markides, reveals that of the €3.4 billion owed in direct taxation, €2.54 billion constitutes unpaid tax, accompanied by €620.2 million in interest and €237.3 million in surcharges. However, the effective recoverable amount is significantly diminished. For instance, €867.6 million remains uncollectible due to pending appeals and objections, while debts related to insolvency or bankruptcy proceedings account for €665.3 million across 44,184 taxpayers. Furthermore, a monitored repayment plan involving monthly installments is in place for arrears amounting to €28.4 million across 422 taxpayers.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Challenges in VAT Collection

The report also provides insights into VAT arrears, which now total €656.6 million. This includes €454.3 million in unpaid taxes, supplemented by €152 million in interest and €50.2 million in surcharges. With many debts being transferred into the TFA system, detailed categorization remains pending for the majority of cases. Nevertheless, €601.7 million linked to 7,273 taxpayers is under active management involving charges on immovable property, allocated to €369.6 million for direct taxation and €232.1 million for VAT.

Recovery Measures and Enforcement

Judicial and administrative measures have been progressively deployed. Direct tax arrears deemed collectible without court involvement stand at €1.27 billion, in addition to €424.6 million in VAT, while banks have already frozen or seized approximately €2 million. Strengthening enforcement, charges on immovable property and other legal instruments have been applied to secure a further €603.6 million worth of debts, and judicial enforcement actions cover €365.4 million linked to 4,332 taxpayers.

Operational Shortcomings and Audit Concerns

An accompanying audit service warning highlighted a systemic loss of potential revenue attributed to thousands of cases from 2014–2017 that fell outside the legal deadlines for assessment. The oversight impacted both individual and corporate taxpayers, with belated assessments undermining the state’s capability to enforce collection. The audit also pointed out that many cases were processed without rigorous audits, urging the Tax Department to prioritize high-risk firms and adhere strictly to legal assessment timelines to safeguard public funds.

Conclusion

The findings underscore a critical juncture for Cyprus as the nation grapples with escalating tax arrears amid evolving economic challenges. Strategic reforms in tax enforcement and timely assessments are essential to restore fiscal discipline and secure the revenue base necessary for sustainable public finance.

The Future Forbes Realty Global Properties

by News Editor

August 24, 2026

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.