In an effort to push the fiscal deficit below 3% of GDP pursuant to the revised Convergence Program, the revenues of £30 million from the regulation of the tax amnesty will be registered in 2004, while the remaining £85 million will be “transferred” in 2005.
The Finance Ministry’s equation “£30 million in 2004 + £85 million in 2005” will create the basis for a drop in the fiscal deficit to 2.9%. It is noted that the unofficial statements after the end of the meeting of the House Finance Committee are in line with latest reports on Press and StockWatch. According to the revised Convergence Program, the revenues for 2004 are expected to reach 0.6% of GDP, excluding the forecasts for the revenues of 2005.
Applications
However, the submission of applications for the tax amnesty has slowed down. Chairman of the Tax Amnesty Committee, Andreas Theophilou together with Finance Ministry’s officials informed the Finance Committee that the tax amnesty revenues have reached £112 million. It is noted that the taxation of 5% was effective until late January while in February taxation amounts to 6.5% on the amnestied capital. Total applications that are still pending have reached 2,000.
Destruction of applications
All applications for tax amnesty will be destroyed at the Committee’s office by late March. Records such as the application number and the sum will be kept upon the applicant’s request. The Finance Committee and the Personal Data Superintendent approved the extension of the destruction.
Extension for penalization
The government also decided to give an extension to the proposal of the House Finance Committee Chairman, Aristos Chrisostomou for the lifting of all secret accounts and their penalization. Despite their denial to admit that they have secret accounts, banks and cooperatives have requested an extension until the end of March. According to representatives, banks must deal with “practical problems, such as the addresses that have been changed or the surname of female customers. Penalization will be effective from April 1.
“If banks insist that there are no secret accounts, we should not give an extension”. AKEL MP, Stavros Evagorou concluded.
The Finance Ministry’s equation “£30 million in 2004 + £85 million in 2005” will create the basis for a drop in the fiscal deficit to 2.9%. It is noted that the unofficial statements after the end of the meeting of the House Finance Committee are in line with latest reports on Press and StockWatch. According to the revised Convergence Program, the revenues for 2004 are expected to reach 0.6% of GDP, excluding the forecasts for the revenues of 2005.
Applications
However, the submission of applications for the tax amnesty has slowed down. Chairman of the Tax Amnesty Committee, Andreas Theophilou together with Finance Ministry’s officials informed the Finance Committee that the tax amnesty revenues have reached £112 million. It is noted that the taxation of 5% was effective until late January while in February taxation amounts to 6.5% on the amnestied capital. Total applications that are still pending have reached 2,000.
Destruction of applications
All applications for tax amnesty will be destroyed at the Committee’s office by late March. Records such as the application number and the sum will be kept upon the applicant’s request. The Finance Committee and the Personal Data Superintendent approved the extension of the destruction.
Extension for penalization
The government also decided to give an extension to the proposal of the House Finance Committee Chairman, Aristos Chrisostomou for the lifting of all secret accounts and their penalization. Despite their denial to admit that they have secret accounts, banks and cooperatives have requested an extension until the end of March. According to representatives, banks must deal with “practical problems, such as the addresses that have been changed or the surname of female customers. Penalization will be effective from April 1.
“If banks insist that there are no secret accounts, we should not give an extension”. AKEL MP, Stavros Evagorou concluded.
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