The Chairman of the Council proposed the establishment of a mandatory hierarchical appeal process to the Tax Council prior to filing an appeal with the Administrative Court, as well as the expansion of its powers and the strengthening of its autonomy, as part of its planned transformation for 2027.
Speaking on Friday at a workshop titled “Tax Council: Transformation 2027,” held at the Presidential Palace under the auspices of the President of the Republic, Mr. Georgiou stated that the goal is to resolve tax disputes more quickly and effectively, relieve the burden on the courts, and strengthen taxpayer confidence.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
Mr. Georgiou noted that the Tax Council currently functions as a specialized extrajudicial body for the review of tax disputes, which, through appropriate upgrades, can evolve into a more effective quasi-judicial body.
As he noted, when disputes arise between the Tax Department and taxpayers, they must be resolved promptly, so as to ensure legal certainty and avoid the prolonged tying up of financial resources, which creates uncertainty and may discourage investment decisions.
In this context, it was recommended that the filing of a hierarchical appeal with the Tax Council be established as a mandatory procedure, following the filing of an objection to tax assessments and prior to appealing to the Administrative Court. According to him, this change could help relieve the burden on the judicial system and make better use of the Tax Council’s expertise.
Proposal to expand jurisdiction
The President of the Tax Council also proposed a legislative expansion of its jurisdiction and authority to cover additional categories of tax disputes.
Specifically, he referred to issues concerning registrations and deregistration in the VAT registry, monetary penalties, new environmental and digital taxes linked to the European acquis, shipping and tonnage taxes, local government taxes and fees, customs and excise taxes, as well as double taxation issues.
At the same time, he argued that, after 27 years of operation, the Tax Council needs to have its autonomy strengthened, with an independent administrative structure, a separate budget, and the necessary staffing to ensure its impartiality and independence.
Referring to digital transformation, he announced that the Council has already submitted a request for technical support through the TSI program and is awaiting a response.
Mr. Georgiou noted that the transformation planned for 2027, as part of the 2026–2030 strategic plan, should not be viewed by the government as an additional financial burden, but as an investment in the economy and tax fairness.
Piki: The Government supports the transformation
For her part, Deputy Minister to the President Irini Piki affirmed that the government supports the transformation of the Tax Council, emphasizing that the speed, transparency, and quality of tax dispute resolution procedures directly affect citizens, businesses, the functioning of the economy, and legal certainty.
Ms. Piki noted that the tax reform, which has been in effect since January 1, 2026, aims to create a fairer framework for tax policy and administration, in which the Tax Council is called upon to play a significant role.
He noted that the effective implementation of the reform requires strong institutions, clear procedures, and reliable mechanisms through which taxpayers can present their cases and receive well-reasoned decisions.
Referring to the possibilities for modernizing the Council, she said that the digital filing of appeals, the creation of a comprehensive digital case file, and the ability to track the progress of each case can substantially improve services for citizens and businesses.
At the same time, she emphasized the importance of systematically collecting data on case processing times, the age of pending cases, and the ratio of new to completed cases, in order to strengthen planning and accountability.
The Deputy Minister also referred to the possibility of categorizing cases according to their complexity, so that simpler cases can be processed more quickly and more complex ones receive the necessary specialized attention. She added that the publication of decisions, with full protection of personal data, can enhance predictability and help prevent tax disputes.
Ms. Piki also linked the effective resolution of tax disputes to the competitiveness of the Cypriot economy, noting that investors evaluate not only tax rates and the stability of the tax framework, but also how potential disputes with the tax administration are handled.
Poyatzis: Tax justice is linked to accountability
Ombudsman Irini Poyatzis noted that mechanisms for resolving tax disputes are not merely a technical or legal issue, but are linked to the democratic functioning of the state and the active participation of citizens.
As she noted, when a taxpayer files an objection or an appeal, they are not only defending their legal interests but also helping to strengthen administrative accountability and improve the quality of administrative decisions. Ms. Poyatzis emphasized the need for faster case processing, increased staffing of the relevant institutions, and better use of technology.
She placed particular emphasis on informing citizens about their rights and the available protection mechanisms, noting that their meaningful participation requires knowledge of the procedures and trust in the objective and effective functioning of the institutions.
He also referred to the digital platforms e-Citizen, e-Expression, and e-Consultation as tools for two-way communication between citizens and the executive branch.
Koursaris: Accessible and timely tax justice
Nicholas Koursaris, President of the Nicosia Bar Association, emphasized that the credibility of a tax system is largely determined by the way in which disputes between thetax administration and taxpayers are resolved.
As he noted, tax justice must be accessible, administered within a reasonable time, based on fully reasoned decisions, and ensure a level playing field between the parties.
He noted that the Tax Council is a fundamental link in the administrative mechanism for resolving tax disputes, the effectiveness of which is measured by its ability to resolve cases in a timely manner, at reduced cost, and in a way that inspires confidence in taxpayers.
Mr. Koursaris described the Council’s transformation for 2027 and the 2026–2030 strategic plan as a significant opportunity to further strengthen these characteristics. He also stated the Nicosia Bar Association’s intention to contribute with well-documented proposals, in collaboration with the Tax Council, the Department of Taxation, the Legal Service, and the House of Representatives.
Source: CNA
