The Cyprus Chamber of Commerce and Industry (Keve) and the Employers and Industrialists Federation (Oev) have found common ground with Tax Commissioner Soteris Markides on aspects of the proposed tax reform bills.

The discussions were revealed during Politis’ podcast ‘Matia stin Economia‘ (A look at the economy), where Keve director general Philokypros Roussounides spoke about recent consultations.

“We recently had a constructive meeting with the tax commissioner,” Roussounides said.

He added that “we had some concerns which we expressed, but also some suggestions.”

Moreover, Roussounides explained that “we are certainly concerned first and foremost about the timing of implementation and also specific parameters of the proposed bills which strengthen government tax collection and the fight against tax evasion, which is also something we want because it creates unfair competition between businesses”.

“We represent fair business practice, so we want to reduce or even eliminate, if possible, through tax reform, such phenomena,” he added.

One of the chamber’s concerns is the possibility of excessive powers being granted to the commissioner, which it raised directly with Markides and his team.

Roussounides stated that “they were not dogmatic, they wanted to listen to us, they did listen to us, and I believe we agreed on several points”.

He stressed that “in this area, we want specific procedures to be established, a clear pathway, to ensure good outcomes from each proposed bill, particularly regarding tax avoidance and tax collection.”

“I think the commissioner accepted this with great satisfaction, he was very positive,” Roussounides said.

He continued that “it is better for him as well not to face targeting or personalisation on specific matters, but when a defined process exists, he can also do his job, regardless of whether the commissioner is Mr Markides or someone else”.

Meanwhile, Oev also identified “several points of convergence” with the commissioner on what should be adjusted in the tax reform proposals.

Its president, George Pantelides, spoke after a two-hour meeting with Markides. “In various areas we found common ground and I must acknowledge that the differences between the business community and the intentions of the competent authority are minimal,” he said.

He explained that “with the clarifications and answers we received today from the tax commissioner, we repositioned ourselves in the right direction of the tax reform.”

Speaking at Oev’s offices, Pantelides said that the federation recognised that the provisions announced earlier by the president of the republic were included in the draft bill.

He added that “at the same time we also recognised some concerns, which could potentially affect the philosophy and objectives of the tax reform.”

“I must say that the tax commissioner listened to us with great attention and we worked on a draft text,” Pantelides said.

He further clarified that “Oev submitted specific concerns and worries, but also suggestions.”

What is more, Pantelides said that “the commissioner and his team came today with concrete arguments and proposals which we believe are in the right direction”.

Looking ahead, he said the next step is for the commissioner to consult with all stakeholders, form an opinion with the Finance Ministry, and submit the bill to parliament.

He stressed that “this bill must contribute to the goals we have all set for tax reform, particularly economic growth and maintaining competitiveness.”

“I must emphasise that in most areas there was alignment of views with the commissioner on the aim of the specific article and, more importantly, on the solution that may help ease concerns of the business community about timing of implementation and provisions that worry entrepreneurs,” he added.

He also pointed out that the business community seeks clear provisions in the legal framework.

On the method of calculating the tax rate, Pantelides said that “there was a clear statement from the tax commissioner and a redrafting is needed for greater clarity”.

He also underlined that in any economy, what businesses demand is economic stability, political stability and tax stability.

“We believe that with the announcements and clarifications we had today from the tax commissioner, we are heading in the right direction,” Pantelides concluded.