FAMAGUSTA GAZETTE – A special audit of the Cyprus Tax Department has revealed serious findings and key areas for improvement, according to a report released Tuesday by the Audit Office.
The review focused on a sample of 2023 transactions and aimed to verify the accuracy of state financial statements and assess compliance with the legal framework.
The report acknowledged a sharp rise in government revenue—from €4.6 billion in 2021 to €6.9 billion in 2024—largely due to a reduction in outstanding tax liabilities. However, auditors noted that the increase was not accompanied by substantial tax audits or income reassessments, potentially costing the state additional revenue.
Despite the revenue growth, the accumulation of overdue debts remains a concern. As of December 31, 2023, outstanding tax obligations totaled €3.1 billion, with €1.4 billion considered high-risk for non-recovery. The report criticized the Tax Department for delays in taking action to collect these debts.
Separately, the Audit Office flagged weaknesses in project management within the Department of Forests.