Tax department to suspend operations of businesses with significant outstanding debts

Starting in June, the Cyprus Tax Department will implement a new measure to suspend the operations of businesses with substantial tax arrears. The initial phase of this initiative targets approximately 500 active companies that each owe more than €1 million. The affected businesses include supermarkets, betting firms, manufacturing plants, and luxury yacht retailers. According to regulations, the measure of business closure can be applied to legal entities with debts exceeding €20,000. Before any suspension occurs, authorities will issue three separate notifications, granting the businesses a total of 25 days to settle their obligations or reach a payment arrangement. These companies have been identified as active entities that failed to respond to previous warnings. The debts in question include income tax, capital gains tax, defense contributions, and VAT. Additionally, the Tax Department is enhancing enforcement procedures, including updated field inspection protocols using new digital systems and tablets.