Cyprus tax department establishes procedures for business sealing and share seizure

The Cyprus Tax Department is finalizing protocols for the temporary sealing of businesses and the seizure of shares as part of tax reforms effective since the beginning of the year. Sealing of business premises will occur if tax declarations are not submitted, if debts exceed €20,000, if invoices are not issued or are inaccurate, or if a tax audit is obstructed. Additionally, shares may be seized for debts exceeding €100,000 that remain unpaid for over 30 days, provided the debt is not under appeal or formal restructuring. The Commissioner may seize shares up to double the value of the debt, rendering them non-transferable. Taxpayers are entitled to a notification period and have the right to challenge these actions in court or clear their debts to lift the measures. Although initially planned for the first quarter, implementation was delayed due to regional economic instability, with potential application expected by summer. Breach of the official seal is considered a criminal offense, and changing business ownership or legal structure does not prevent enforcement.