Cyprus proposes ...
Cyprus proposes temporary closures for businesses repeatedly violating tax rules
Cyprus lawmakers have introduced a new tax enforcement mechanism aimed at addressing rampant non-compliance within the small-business sector. If passed into law, the tax department will gain authority—backed by court orders and police support—to temporarily seal the premises of businesses that persistently flout tax regulations.
Under the draft legislation, companies that fail to issue invoices for multiple transactions (or for a single transaction over €500), issue fake or inaccurate receipts, or obstruct official audits could face at least 48-hour closures. A judge, convinced of serious or repeated offenses, will issue the sealing order, which must then be displayed at the business’s entrance along with details of fine amounts—set at five times the value of the missing or inaccurate sales documentation.
Businesses that continue ignoring obligations—such as failing to file tax returns or withholding contribution statements for multiple periods—may face extended sanctions. Courts may prolong closures by up to seven days or until the business clears its outstanding debt and complies fully with tax requirements.
The proposed measure, drawing inspiration from Greece’s Independent Authority for Public Revenue model, is part of six pending tax reform bills slated for implementation beginning January 1, 2026. If enacted, it would empower authorities to take swift action against persistent offenders, aiming to bolster revenue collection and deter systematic evasion.
Summary
This move represents a shift toward tougher enforcement in Cyprus’s tax regime. By granting the tax department the authority to seal non-compliant businesses temporarily, the government aims to ramp up deterrence against invoice violations and audit interference. Repeat offenders face escalating penalties and longer closures. The changes form part of broader fiscal reforms set to take effect next year.
Market Cyprus - News Service
Our digital marketing platform publishes daily captivating news about Cyprus, covering diverse topics from cultural events and historical insights to modern developments and travel tips. Stay informed and engaged with our up-to-date, interesting content showcasing the beauty and vibrancy of Cyprus.