Elias Neocleous & Co LLC updates

Supreme Court rules that monetary benefit given to employee constitutes salary and must be paid
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 18 August 2020

The Supreme Court recently overruled a first-instance decision which had acquitted the respondent and its director of charges concerning the non-payment of monthly salaries to monthly paid staff. The Supreme Court's approach appears to be a reasonable one. It illustrates the need to ensure employees' right to receive their salary and the benefits to which they are entitled on the basis of their employment agreement.

Cyprus and Switzerland agree updated double tax treaty
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 14 August 2020

Cyprus recently agreed an updated double tax treaty (DTT) with Switzerland. The amendments made to the DTT focus on business profits, associated enterprises, mutual agreement procedures and benefit entitlement, and the amending protocol introduces the mandatory minimum standards of the Organisation for Economic Cooperation and Development's Base Erosion and Profit Shifting actions regarding arrangements on bilateral conventions and verbal amendments agreed bilaterally.

Tax Department's new electronic Tax Gateway service imminent
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 17 July 2020

The Tax Department recently informed the Cyprus International Businesses Association that it expects its new electronic taxation service to be operational imminently. The Tax Gateway aims to provide a central point via which all citizens, businesses and their representatives can gain information about debts owed and payments made to the department.

First-instance courts must evaluate testimony adduced during hearings
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 26 May 2020

In a recent appeal, the Supreme Court ruled that the first-instance court could not ignore testimony adduced during a hearing without having evaluated it. In its decision, the Supreme Court stressed that where there is a disagreement as to the substantive facts of a case, the evaluation of testimony is the cornerstone of any decision. The absence of judgement as to whether a substantial witness has told the truth will render the court's decision incomplete.

Cyprus convicted and fined for 26-year-old soldier's death
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 05 May 2020

The European Court of Human Rights (ECHR) recently sentenced Cyprus for the death of a 26-year-old soldier. The ECHR found that the Cypriot authorities' investigation into Athanasios Nicolaou's death had infringed Article 2 of the European Convention on Human Rights. Consequently, the ECHR awarded his family €32,000 in non-pecuniary damages.

Tax measures introduced due to COVID-19
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 01 May 2020

The government has introduced a variety of tax measures intended to help taxpayers preserve their cash flows and ease the administrative burden on them during the COVID-19 health emergency. In this regard, the deadlines for payment of indirect taxes and those pertaining to tax returns have been extended.

Cyprus ship registry: updates on precautions for mariners in relation to COVID-19
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 29 April 2020

The Shipping Deputy Ministry recently informed the registered owners, charterers, ship managers and representatives of Cyprus-flagged ships of a number of new circular letters issued by the International Maritime Organisation. All owners and managers of Cyprus-flagged ships are advised to take note and implement the measures contained in the circular letters and the interim advice for ship operators prepared at the request of the Directorate General for Health and Food Safety.

Shipping Deputy Ministry extends payment deadlines due to COVID-19
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 22 April 2020

In order to support shipping companies and owners of Cyprus-flagged ships and mitigate the difficulties arising from the COVID-19 outbreak, the Shipping Deputy Ministry has extended the deadline for paying tonnage tax for Cyprus ships and the Register of Cyprus Ships annual maintenance fee to 31 May 2020. The ministry has also introduced special arrangements in order to protect public health and limit the spread of the virus.

Maritime cyber-risk management in safety management systems
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 25 March 2020

The Shipping Deputy Ministry recently issued a circular on cyber risk which recognises the need to raise awareness of cyber-risk threats and vulnerabilities to support safe and secure shipping. 'Maritime cyber risk' refers to a measure of the extent to which a technology asset could be threatened by a potential circumstance or event, which may result in shipping-related operational, safety or security failures as a consequence of information or systems being corrupted, lost or compromised.

Court procedure for evicting defaulting tenants amended
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 17 March 2020

The law on property rental in Cyprus appears to have been unfairly weighted in favour of tenants for some time, as defaulting tenants have been legally entitled to remain in a property without paying their legally due rent until the hearing of an application for recovery of possession before the Rent Control Court. However, the recent amendment of the Rent (Control) Law seeks to resolve the problem of landlords who have had to deal with such tenants.

New double tax agreement between Cyprus and Kazakhstan
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 13 March 2020

The Cyprus-Kazakhstan double tax treaty recently entered into force. The agreement – which is the first of its kind between the two countries and closely based on the latest Organisation for Economic Cooperation and Development Model Tax Convention framework – is to be welcomed in view of the possibilities for business, transactional work and business synergies that it may help to create between the two countries.

Tonnage tax scheme extended until 31 December 2029
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 11 March 2020

The Shipping Deputy Ministry has issued Circular 1/2020 informing shipowners, charterers and ship managers that, following the formal assessment of the Cyprus tonnage tax scheme, the European Commission has concluded that Cyprus's relevant scheme is compatible with the internal market and in line with the Guidelines on State Aid to Maritime Transport.

Coronavirus – possible effects on contracts and precautions for mariners
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 04 March 2020

The Deputy Ministry of Shipping recently issued a circular on measures to minimise the risks of coronavirus to seafarers, passengers and others on board ships and directed interested parties to the International Maritime Organisation's (IMO's) Circular Letter 4204, which provides additional guidance on how to minimise the risks to the maritime industry. All owners and managers of ships flying the Cyprus flag are strongly urged to promulgate the information in IMO Circular Letter 4204.

Supreme Court rejects EAW cancellation request: appellant's individual rights not absolute
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 07 January 2020

The Supreme Court recently rejected a Greek appellant's request for the annulment of a European arrest warrant (EAW) which had been issued against him in order to investigate alleged criminal offences. Although the court erroneously accepted the appellant's appeal of the ne bis in idem principle (ie, the prohibition of double jeopardy), it rightly concluded that Cyprus was not prevented from executing the EAW by investigating the case against the appellant.

Guarantee for faithful execution of tenancy lease agreement does not cover statutory tenancy period
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 17 December 2019

In a recent appeal case, the Supreme Court ruled that the wording of a guarantee signed in respect of a tenancy lease agreement did not fall within the context of an explicit commitment to cover the statutory tenancy as well. Therefore, it could not be concluded that the parties intended to extend the guarantee to this form of tenancy and that the guarantor was committed to pay the rent during said period.

New regulations on fees and dues for ocean-going commercial ships
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 06 November 2019

The Shipping Deputy Ministry recently issued the Merchant Shipping (Fees and Dues with respect to Ocean Going Commercial Cyprus Ships) Regulations, which contain the new fees and charges payable for ocean-going commercial ships registered in Cyprus. In particular, the regulations cover fees concerning the registration of ships and other transactions with the shipping registry (eg, ship certificates and applications for the transfer of ownership or name change of a ship).

Interlocutory injunctions as a post-judgment tool
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 05 November 2019

An interim or interlocutory injunction is a court order effectively ordering a party to carry out or refrain from carrying out an action for a certain period. The general rule is that an injunction remains effective until a final judgment is rendered for the main action or until it is cancelled or modified by a subsequent court injunction. Nonetheless, in certain instances, the Cypriot courts have decided to uphold such injunctions in effect, even after the issuance of a judgment in the main proceedings, to facilitate execution.

Supreme Court upholds first-instance decision on fraudulent transfer of shares
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 15 October 2019

​The Supreme Court recently confirmed a first-instance decision which had annulled a transfer of shares by a debtor to his son. The Supreme Court found that the debtor had acted fraudulently to prevent his creditor from executing a court judgment which had been issued in the creditor's favour. The Supreme Court also found that the issuance of a decree on the sale of shares as a means of enforcing the decision against the debtor was possible.

Tax incentives for start-ups
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 27 September 2019

Innovation and entrepreneurship are heavily sought after by countries looking to ameliorate and modernise their economies. Cyprus is no different in this respect and has prioritised creating a vibrant landscape which addresses the needs of start-ups and their investors. The defining features of the Cypriot system are its IP box regime, notional interest deduction, alternative investment funds and various tax incentives which can be coupled with research and development and innovation.

Brexit's potential impact on shipping in Cyprus
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 21 August 2019

In an effort to minimise disruption to the shipping industry deriving from Brexit, the Shipping Deputy Ministry has undertaken a number of contingency measures. However, the ministry has emphasised that affected parties must also make their own preparations for the United Kingdom's withdrawal from the European Union and that where new authorisations, licences or certificates will be required post-Brexit, each party will be responsible for applying in good time.

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