The OECD forum released a compliance ratings report on Tax Transparency and Exchange of Information assessing the legal and regulatory frameworks in the jurisdiction and how these are executed. The meeting was held in Jakatra focusing 50 jurisdictions. In response to this report the Cyprus’s Finance Ministry claims that the information used in rating is backdated.
Standards of tax transparency and information exchange are being assessed by the OECD on an ongoing basis. The subject matter of tax transparency is an important part of the fight against international tax avoidance and evasion and is also part of the G20 action plan on combating base erosion and profit shifting.
The Ministry recalled that rating does not consider the changes in the laws that were implemented in 2012. In addition, The Ministry again explains that a less compliance rate for filing tax returns has been in part due to uncertainties over the number of active companies on the island, as the total has been artificially inflated.
