Optimising processes in tax administration in Cyprus

for the national Tax Administration

The European Commission supported national authorities in their efforts to centralise the administration of direct and indirect (VAT) taxation in one single tax department. The support also helped the authorities establish new processes to improve the national tax collection system.

Context

The Cypriot authorities wished to increase tax revenues. By centralising the country's administration for direct and indirect taxation in a single tax department, they also aimed to make the national tax collection system more efficient.

Support delivered

The support provided by the Commission and experts from other EU Member States was delivered over 12 months in the form of short-term expert missions.

The support measures consisted of:

• analysing the functioning of the two tax administrations (registration, payments, tax returns, tax collection, audit, etc.); and
• designing integrated processes for the future tax department.

Results achieved

The Commission support delivered the following results:

• analyses, models, and a plan to integrate the two services in one tax department; and
• a methodology for developing process in the future tax department.

And had the following impact:

• improved tax collection system; and
• transfer of knowledge and capacity building within the national revenue administration.