Tax Man Clamping Down on Gamblers in Cyprus

Published Tuesday, July 13, 2010 -

According to the Cyprus Mail a new regime for tax collecting is about to come into effect on the Mediterranean island of Cyprus. Many online gambling firms located in Cyprus are bracing for what looks like a more comprehensive method of revenue generation.
The Inland Revenue Department director, Georgios Poufos, explained that his department was intensifying its tax inspection initiatives aimed at identifying defaulters, there was some suggestion that some 34 illegal gambling 'godfathers' were on the crack down list.
The local publication Phileleftheros stated that the Inland Revenue Department had identified some 500 individuals whose main income was from gambling, suggesting most of those identified do not have a tax-file.
Director Poufos told the Cyprus Mail that the IRD will invite "any legal or physical person resident for tax purposes in Cyprus who has not submitted a tax-return." to do so. He added, "That is their obligation, so our role is to be a watchdog,"
Penalties ranging from overdue interest to fines and criminal charges, are to be applied to anyone who fails to submit a tax-return when required by the IRD. 
Poufos also commented, "For some time now, we have intensified our inspections of the whole tax base, so it would be wrong to focus on just one small part in isolation," adding, "We are bound by confidentiality on the details of our work."
An anonymous source from the Inland Revenue Department said, "There are a lot of people who handle millions, and not just to do with gambling, who do not have a tax file."
Cyprus similar to Greece has a problem with it's taxation compliance by it's citizens and this action will remedy the issue and generate much needed income for the government.
Ionas Nicolaou, chairperson for the House Legal Affairs of Cyprus, said, that parliament is discussing government proposals for regulating all forms of gambling including internet gambling hopefully to clarify the laws regarding taxation of the activity.




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