Tax authorities initiate investigations into the 'Mafia State' case

The Cyprus Tax Department has officially launched tax audits concerning individuals and transactions linked to the high-profile 'Mafia State' case. This development follows the completion of an initial evaluation phase and the implementation of recent legislative amendments that allow for direct cooperation between the Independent Authority Against Corruption and state regulatory mechanisms.

Finance Minister Makis Keravnos confirmed the progress in a formal response to a parliamentary question submitted by MP Irene Charalambidou. The Tax Commissioner has received a comprehensive report from the Independent Authority Against Corruption, originally submitted on June 22, 2026. After a thorough review of this multi-page document, authorities identified specific issues with tax implications that now require further investigation. While the minister did not disclose the identities of the targeted individuals or the specific nature of the transactions, he stated that the Tax Department has mapped out the necessary actions and instructed relevant officials to proceed with the audits.

This investigative process is a direct result of the 2026 amendment law concerning the establishment and operation of the Independent Authority Against Corruption. The current status involves ongoing, targeted audits as the government seeks to address potential financial irregularities exposed by the Authority's initial findings.