Cyprus government seeks to waive millions in undeclared work fines

The Cyprus government is moving toward a legislative settlement to waive €64.3 million in surcharges stemming from unpaid administrative fines for undeclared work. This debt relief program affects a total of 706 entities, comprising 595 employers and 111 self-employed individuals, out of a total outstanding debt of €73 million. The initiative aims to support small businesses struggling under these accumulated financial obligations.

Parliament has demanded the disclosure of a nominal list of these 706 debtors to ensure transparency and accountability. The government initially resisted this request, citing data protection concerns. Debates are ongoing regarding whether the final list provided to the House of Representatives will include specific names or only aggregate financial data. The Ministry of Labour is expected to finalize its decision on the format of this disclosure by Monday, following consultations with the Commissioner for Personal Data Protection.

This proposal has sparked significant public debate concerning the principle of equal treatment. Critics argue that while the relief may help struggling small businesses, it risks rewarding entities that systematically ignored legal requirements. There are concerns that the policy could benefit financially stable companies that chose not to pay taxes, effectively granting them amnesty.