Breaking news

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

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.

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.

Cyberattacks On Governments, Infrastructure And Businesses Shape 2026

Cybersecurity has become an increasingly prominent issue in 2026 as cyber incidents continue to affect governments, businesses and critical infrastructure worldwide. Recent attacks have targeted sectors ranging from healthcare and education to energy and public administration, highlighting the growing impact of cyber threats on economic activity and national security.

Questions Remain Over DOGE’s Access To Social Security Data

More than a year after individuals linked to the Elon Musk-led Department of Government Efficiency (DOGE) gained access to systems at the Social Security Administration, questions remain about how sensitive data was handled. Court proceedings are ongoing following allegations that a copy of the Social Security database was transferred to an external server, potentially exposing personal information belonging to millions of Americans.

According to legal filings, the Social Security Administration has acknowledged uncertainty regarding the contents of the server. Lawmakers have warned that, if confirmed, the incident could rank among the largest data breaches involving government records in U.S. history.

Hackers Increasingly Target Water Systems And Energy Grids

Cyberattacks targeting critical infrastructure have continued across Europe, including incidents affecting energy networks and water systems. Authorities in Poland, Sweden and Norway have reported attacks linked to groups believed to be acting in support of Russian interests. At the same time, tensions in the Middle East have heightened concerns about cyber threats to critical infrastructure, particularly privately operated utilities with limited cybersecurity resources.

Iranian Government Hackers Target Stryker

In March, Iranian hackers reportedly carried out a cyberattack against medical technology company Stryker, wiping thousands of employee devices. The incident, attributed to a group linked to Iranian intelligence, disrupted operations and affected the company’s first-quarter financial performance.

Instructure Among Shinyhunters’ Disruptive Hacking Campaigns

The hacking group ShinyHunters has continued to rely on voice phishing techniques to gain access to corporate networks. One of the most prominent incidents involved education technology company Instructure, whose Canvas learning management platform was breached.

The attack exposed personal information belonging to more than 30 million users and disrupted academic schedules during examination periods. Other reported victims include Charter, Carnival and organisations operating in the finance and public sectors.

Supply Chain Attacks Continue To Target Technology Companies

Software supply chains have remained a major target for cybercriminals. Security researchers have linked a series of attacks to compromises involving tools and platforms used by software developers, including Aqua Security’s Trivy, Bitwarden and Checkmarx. Such incidents can have wider consequences across the technology industry because compromised software updates may provide attackers with access to credentials and internal systems.

FBI Reports Major Cyber Incident

The Federal Bureau of Investigation was compelled to declare a “major cyber incident” in April after one of its surveillance systems was breached by actors believed to be linked to Chinese intelligence. This breach, which reportedly exposed the phone numbers of individuals under surveillance, has raised serious concerns about national security and the integrity of federal surveillance operations.

Hasbro Faces Operational Disruptions Following Cyberattack

Toy manufacturer Hasbro experienced weeks of operational disruption after detecting a cyberattack in late March. The company reported website outages and other operational challenges before confirming in May that the attackers had been removed from affected systems. Regulatory filing delays and other business impacts are expected to continue in the near term.

Millions Of Identity Documents Exposed

Several data exposure incidents reported during the year affected systems used for identity verification and customer onboarding. Cases involving a hotel check-in platform, a money transfer service, a prison communications provider and a UK visa portal exposed passports, driver’s licences and other identification documents belonging to more than two million people. The incidents have raised concerns about the security of personal information collected as part of identity verification requirements.

Growing Focus On Cybersecurity

The incidents reported throughout 2026 demonstrate the increasing impact of cyber threats across both public and private sectors. As organisations continue investing in digital infrastructure and artificial intelligence, cybersecurity remains a central concern for governments, businesses and critical service providers.

Aretilaw firm
The Future Forbes Realty Global Properties
eCredo
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter