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This provision will apply with respect to tax liabilities which arise
during the tax year 2011 and any subsequent tax years.
As from 1 January 2011, this provision will only apply where the
directors or shareholders are physical persons and will not apply
where they are companies. Where they are companies the
provisions of article 33 relating to arm’s length conditions in
transactions between related parties will apply.
Existing companies which are not yet registered with the tax
authorities may register by 30 June 2011 without suffering any
penalties.
All businesses which maintain stocks should carry out annual stock
takes and the related documentation should be available for
inspection by the tax authorities.
December 2010 www.bdo.com.cy
In the case where a recourse has been filed at the Supreme Court
against an assessment raised by the tax authorities, only the
payment of the disputed amount of tax (and not the total amount
of tax) will be postponed until the issuance of the decision of the
Court.
Also, in the case where a person does not pay, by the appropriate
due date, an additional tax calculated at the rate of 5% on the
unpaid tax will be imposed. This provision will enter into force
after 6 months from the date of publication of the relevant
legislation in the Official Gazette of the Republic.
This tax publication has been written in general terms and should be seen
as broad guidance only. The publication cannot be relied upon to cover
specific situations and you should not act, or refrain from acting, upon the
information contained herein without obtaining specific professional
advice. Please contact BDO Ltd to discuss these matters in the context of
your particular circumstances. BDO Ltd, its partners, employees and agents
do not accept or assume any liability or duty of care for any loss arising al
from any action taken or not taken by anyone in reliance on the
information in this publication or for any decision based on it. Nicosia: Karlos Zangoulos
BDO Ltd, a Cyprus limited liability company, is a member of BDO kzangoulos@bdo.com.cy
International Limited, a UK company limited by guarantee, and forms part tel: +357 22 495 707
of the international BDO network of independent member firms.
BDO is the brand name for the BDO network and for each of the BDO
Member Firms.
Limassol: Rois Potamitis
rpotamitis@bdo.com.cy
tel: +357 25 735450