Case Studies

Unfortunately, the Tax Department denied it, claiming that certain profit and loss items were incorrectly taxed. Following the reject, our team made an appointment in the main Tax Department located in Nicosia to defend our client. On behalf of the client, CPV Audit presented all relevant information to the Head of Tax Department, demonstrating that the client's business activities are compliant with Cyprus Tax Law and that no illegal activity has been committed. The Head persisted in continued arguing. Our tax experts went through 3 further meetings in order to persuade the Tax Department. Finally, the tax commissioner agreed to accept our position with no tax adjustments for the client. The client had been refunded in full. 

During the preparation of client's financial statements we found the problem and informed the client about the issue of one transaction that generated significant tax liability. Fortunately, we found that this transaction was not finalized until the moment of preparing management accounts.  The client was taken aback by this fact and immediately transferred the company to our office to handle all tax and accounting concerns.  Therefore, the client didn't finalize the transaction what resulted in a 150.000 Euro tax savings. Relying to our recommendation for carrying out a specific transaction, the client rerooted the transaction in order to minimize tax liability in the end.

The company was providing a software programs for royalties and license fees, allowing its clients to legally and efficiently use their products. Further examination of the client's documentation revealed that its products were subject to the intellectual property tax regime, which in the case of the client allows for an approximately 80% reduction of the taxable profits derived from the company's operations. Apparently, the prior tax advisor didn't reach this conclusion and, instead of implementing the above regulation, treated the business as taxable under the standard tax regulations, resulting in a client's high tax liability.

The client was skeptical about the fact that his attorneys and tax advisors convinced him not to pay any taxes since his company were trading entitles, such as bonds, shares, etc. CPV Audit reviewed company documentation and its operations’ specification. The client achieved that the company provided shares, bonds, and a variety of other titles. Following the record, we requested to inspect the legal documents of these titles' purchases and sales. During the titles investigation, our tax experts found that many of the titles that the client accurately identified as titles were actually non-taxable trade titles for Cyprus Tax Authority.