New tax legislation enables the temporary closure of businesses with significant tax debts

The Cyprus Tax Department is implementing new measures authorized by Parliament to address tax non-compliance. Businesses with tax debts exceeding €20,000 face the risk of temporary closure and the sealing of their premises. The enforcement process will prioritize entities with the largest outstanding debts, specifically targeting those owing over €1 million. Approximately 500 businesses, including supermarkets, betting firms, luxury yacht dealers, and industrial manufacturers, have been identified for potential enforcement. The procedure involves issuing three formal notifications to the debtor before the authorities proceed with the suspension of operations. The primary objective is not permanent closure, but to compel debtors to arrange for repayment schedules through installment plans. Businesses may avoid closure by settling their debts or obtaining a certificate of compliance from the authorities.