Nicosia, Cyprus. President Nikos Christodoulides is facing renewed pressure to show independence from former president Nicos Anastasiades after the anti-corruption authority’s findings in the Mafia State case were formally expanded to include scrutiny by tax commissioner Sotiris Markides. The findings will, for the first time, be transmitted to the tax commissioner under recently approved legislation establishing direct institutional cooperation between the anti-corruption body and tax authorities.
Expansion of the inquiry
The move follows a proposal advanced by Alma MP Irene Charalambides, who has argued for years that corruption and money laundering investigations should automatically trigger targeted tax audits.
The development broadens the scope of the inquiry stemming from the authority’s report, which recommends criminal investigations into the law firm Nicos Chr. Anastasiades & Partners, several of its partners, former senior officials and former president Nicos Anastasiades.
Tax examination powers
Tax authorities will now examine whether any offences relating to inaccurate tax declarations, false information, undisclosed income or other tax violations may have occurred.
Under the legislation, investigators may examine financial activity dating back as far as 12 years from the start of an inquiry, while authorities are also empowered to scrutinise accounts held abroad.
Political response
Charalambides welcomed the development, saying the involvement of the commissioner represents a practical test of reforms intended to strengthen accountability mechanisms.
Speaking to Sigma on Thursday, she said she felt “absolutely vindicated” by findings which she said reflected concerns she had been raising for years regarding institutional decay and political patronage that corroded the rule of law.
Focus of the report
The report centres on allegations contained in the book Mafia State and examines claims involving offshore structures, golden passport approvals, money laundering concerns and the conduct of public authorities responsible for investigating those matters.
A central recommendation concerns the law firm Nicos Chr. Anastasiades & Partners, which the authority says should be investigated for possible money laundering offences.
