Cyprus news: Probes into haircut avoiders, economic collapse

The In Cyprus website reports that “Scores of companies that transferred millions from Cyprus days before the haircut on deposits had no tax files and had not submitted their tax returns for 2011, tax authorities have found. The Inland Revenue Department carried out the investigation based on a list of individuals and companies that transferred money abroad in the run-up to the March eurogroup decisions.

The list was sent by parliament which had requested the list from the Central Bank as part of a probe on whether there was prior knowledge of the haircut. It is understood the Department of Inland Revenue has already commenced legal action against the companies. But it is uncertain as to how to proceed with the individuals since their identity card numbers were not provided by the Central Bank.”

The “haircut” was a partial seizure of deposits which aimed to recapitalize failing Cyprus banks.

In other Cyprus probe news, a committee has submitted the results of their inquiry into the collapse of the economy: “President Anastasiades and his advisors will today begin studying the implications of the 280-page report of the committee of inquiry into how Cyprus’ economy and banking sector nearly collapsed.”

“The committee of inquiry spent five months on its investigation, questioning 42 witnesses including Anastasiades and his predecessor Demetris Christofias.”

“The government had pledged to reveal the report’s findings but a final decision will follow the advice of Attorney General Costas Clerides to ensure any resulting legal action is not compromised.”

The article does not mention if the report covers the role of Cyprus´s large offshore financial sector in the collapse.

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One thought on “Cyprus news: Probes into haircut avoiders, economic collapse

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