Audit Office Report on the Tax Department: Positives and Weaknesses

The Audit Office of Cyprus has published a special report on the Tax Department following an audit of a sample of 2023 transactions. The audit focused on the accuracy of the financial statements and compliance with legislation.

Revenue Increase: According to the report, state revenues increased significantly from €4.6 billion in 2021 to €6.9 billion in 2024, due to the reduction of outstanding taxes.

Weaknesses: The report identified an accumulation of overdue revenues amounting to €3.1 billion as of 31.12.2023, with €1.4 billion at risk of not being collected. In addition, deficiencies were noted in company audits and system reconciliation, as well as delays in the payment of amounts to third parties.

The Audit Office states that the positive attitude of the Tax Commissioner contributed to the effectiveness of the audits. The full report is available here.