Tax Authority Generates €29.9 Million In Revenue From High-Risk Audits Amid VAT And Tax Gaps

by THEFUTURE.TEAM

November 17, 2025

The Department of Taxation has reported an impressive revenue of €29.9 million over the last two years following audits on high-risk companies, as detailed by Assistant Tax Officer Christos Karoullas before the Parliamentary Oversight Committee. The department, in alignment with recommendations from the Audit Service and supported by a recent circular issued by the new Tax Commissioner Sotiris Markidis, has restructured its approach.

Strategic Unit Deployments And Revenue Outcomes

The reforms have led to the establishment of two crucial units. The Tax Declaration Evaluation Unit implements a novel risk detection system, while the Pan-Cyprus VAT Audit Unit focuses on indirect taxation surveillance. Their combined efforts have yielded significant financial returns: €14.3 million from the initial unit and €15.6 million from on-site VAT inspections.

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

Enhanced Monitoring In Hospitality And Real Estate

General Auditor Andreas Papakostantinou outlined that the audits of hospitality entities in Mackenzie, Larnaca, were prompted by discussions regarding the utilization of immovable properties. He emphasized that while the Audit Service’s recommendations are robust, they serve as a springboard for further enhanced oversight rather than a criticism.

Tightening VAT Controls And Event Taxation

Audit Service Officer Maria Pavlou highlighted significant shortcomings in VAT management, noting that reduced rates were applied in circumstances that did not meet the necessary criteria. Furthermore, she pointed to issues in the taxation of artistic events, revealing instances of undeclared concerts and inadequate tax administration.

Innovative Measures And Future Projections

In response, Karoullas announced the creation of a Pan-Cyprus register for artistic events, with approximately 200 events selected for audit in 2025. Larnaca Municipality Treasurer Alexandros Anastasios explained that many events are never formally registered at the municipal level, compounding licensing and supervisory challenges. Additionally, Deputy Director of the Ministry of Tourism, Kostas Konstantinou, confirmed that the unique property issues in Mackenzie will be addressed with a new contractual framework, while forthcoming legislation for hospitality spaces is set to intensify control.

Commitment To Rigorous Oversight And Reform

Committee on Oversight Chairman Zacharias Koulias commended the Taxation Department for its organized and effective work, suggesting that paying taxes should be considered a civic duty—potentially rewarded with incentives for compliant companies. AKEL Member of Parliament Irini Charalambidou also praised the specialized audit units for their efficiency and revenue contributions, advocating for immediate recruitment to fill 100 vacant positions and stressing the importance of a fiscal reform to eradicate tax evasion in nightlife and cash-paid artist engagements.

Through these strategic initiatives and a renewed focus on compliance, the Taxation Department is not only reinforcing regulatory oversight but also establishing a precedent for effective tax administration across the region.

The Future Forbes Realty Global Properties

EU Mercosur Agreement Sparks Political Battle Over Cyprus Agriculture

by THEFUTURE.TEAM

January 16, 2026

A political battleground emerged in the Parliamentary Agriculture Committee’s latest session, as fierce debates broke out over the controversial trade deal between the European Union and Latin American nations under the Mercosur framework. Lawmakers voiced deep concerns regarding food safety and the prospects for local agriculture, particularly following the high-profile absence of the Minister of Trade.

Minister Absence And Parliamentary Integrity

Committee Chair Giannakis Gabriel expressed strong disapproval over the Minister’s no-show, noting that the extraordinary session was scheduled at midday at the Minister’s own request. “His absence undermines the authority of the parliament,” Mr. Gabriel declared. Given that the Minister is not abroad, it was expected that he would be present to clarify why Cyprus supported an agreement widely criticized as disadvantaging the agricultural sector.

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

Trade Deal Under Scrutiny

In his address, A.C.E.L General Secretary Stefanos Stefanos described the pact as a “dangerous agreement” imposed under the pressure of multinational conglomerates. He especially critiqued the contrasting sanitary standards whereby, while the EU bans our farmers from using certain pesticides and antibiotics, the Mercosur deal appears to allow imports produced with these very substances. His remarks underscored the possibility of double standards in safety measures and the potential long-term impacts on Cypriot agriculture.

Economic And Safety Concerns

Legislators questioned the basis of government studies that justified backing the agreement, even as Cyprus’ agricultural sustainability is increasingly threatened by water scarcity and soaring production costs. Representatives from various political factions pointed to insufficient controls over import volumes and tariff structures. For example, Christos Orphanidis (DIKO) demanded precise data on imports from Latin America, citing honey as a case in point, and pressed for clear explanations regarding the tariff regime.

Legal And Health Implications

Questions about legal authority were raised by Elias Myriantounos (EDEK), who inquired whether parliament can reject or amend the agreement should economic studies forecast negative outcomes. Environmental advocates, like Haralambos Theopemptou of the Movement of Ecologists, emphasized the need to safeguard traditional products such as halloumi, highlighting concerns over how rigorous food safety controls will be maintained. Meanwhile, Linos Papagiannis (ELAM) cautioned against unfair competition, drawing parallels with challenges posed by lower-standard goods from occupied territories.

Protecting Local Interests

The overarching message from lawmakers was clear: the future of Cyprus’ farming community and the well-being of its citizens should not be sacrificed at the altar of commercial trade. Agricultural organizations have voiced alarm over the importation of goods potentially contaminated with banned substances, the risk of market distortion by low-quality products, and the lack of localized impact studies. They argue that the agreement is biased in favor of select corporate interests, ultimately undermining consumer safety and the livelihood of European farmers.

As this debate continues to unfold, the outcome of these deliberations will be pivotal in determining not only trade policy but also the long-term economic and food security landscape of Cyprus.