Elias Neocleous & Co LLC updates

Court examines validity of lawyer's sworn affidavit provided on behalf of clients as part of interim application
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 13 August 2019

The Larnaca District Court recently issued a decision on the validity of a sworn affidavit provided by a lawyer on behalf of his clients in the context of an interim application. Drawing on relevant case law, the court found that lawyers who are or will be witnesses in the relevant case or who represent clients in the relevant case cannot provide sworn affidavits as part of the court proceedings. As a result, the court rejected the claimant's objection for being invalid.

Objectivity versus practicality: adding a third party to an action
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 06 August 2019

A recent Supreme Court decision examined a first-instance court's interpretation of the Civil Procedure Rules and, in particular, who can be added as a third party to a process pending before the courts. The decision established that the courts should look only at the conditions imposed by the Civil Procedure Rules on a prima facie basis and not the merits of the claim.

Interim injunctions: submission of recognisance by lawyer on client's behalf
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 30 July 2019

In a recent first-instance judgment, the Supreme Court of Cyprus examined the meaning of 'recognisance' under the Civil Procedure Law. The judgment indicates that the court has a tendency to follow both a more liberal approach reflecting the needs of modern commercial transactions and a teleological interpretation by focusing on the purpose of legislation instead of the ordinary meaning of the words.

Dismissal of application due to delay in implementing enforcement measures
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 23 July 2019

The Supreme Court recently upheld a lower-court judgment to dismiss an application under the Civil Procedural Rules requesting enforcement measures 18-and-a-half years after an initial judgment had been handed down. However, the appeal was dismissed because the debt judgment's existence had not been established and because there had been such a long delay in applying for the adoption of the enforcement measures.

Who has locus standi to bring derivative actions in Cyprus?
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 16 July 2019

In order for a derivative action to be raised, there must be evidence of fraud and of wrongdoers controlling a company to the extent that the company cannot be made a plaintiff in a lawsuit. Recent case law has confirmed that when shares in a company are held on trust by a nominee shareholder, only they are entitled to raise an action on the company's behalf. In practice, this means that a company's beneficial owner has no locus standi to claim their rights.

Admissibility of digital evidence in court
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 02 July 2019

The rapid development of technology and the use of digital devices have resulted in a significant transition from the creation of physical to digital data. Consequently, the role of digital forensics in fighting crime is becoming ever more important and it is critical for law firms and courts to develop a well-thought-out strategy for such investigations. This article aims to demystify this subject and define high-level criteria that can be used to identify the needs and admissibility of digital evidence in court.

Response to EU Anti-tax Avoidance Directive
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 14 June 2019

The House of Representatives recently approved legislation implementing the EU Anti-tax Avoidance Directive in Cyprus with the aim of improving the resilience of the internal market against cross-border tax avoidance practices. The new legislation has once again demonstrated the government's commitment to supporting international efforts to tackle tax avoidance practices.

New policy on registering vessels in Cyprus Register of Ships
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 12 June 2019

The Deputy Ministry of Shipping recently updated its policy on the eligibility of ships to be registered under the Cyprus flag. The policy stipulates additional requirements beyond those set out in the Merchant Shipping Registration of Ships, Sales and Mortgages Law and should therefore be read in conjunction with the relevant legal provisions.

Court applies international collision regulations and considers subrogation
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 22 May 2019

The admiralty jurisdiction of the Supreme Court recently ruled in a case concerning a marine accident which occurred when the bow of a sailing boat rammed the starboard side of a speedboat. It was highly disputed whether the sailing boat had been simultaneously using open sails and its engine. In reaching its conclusion, the court considered the evidence and the Rules of the Convention on the International Regulations for Preventing Collisions at Sea.

New form introduced for safety management and port facility security requirements
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 01 May 2019

The Deputy Ministry of Shipping recently announced its decision to replace the International Safety Management Code Form and the International Ship and Port Facility Security Code Form with a new consolidated form in an effort to reduce paperwork and avoid the duplication of information. All interested entities are requested to use the new form to declare the particulars of companies or ships under the code and to comply with relevant circulars.

Can a driver be responsible for the death of a passenger with heart problems?
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 30 April 2019

The Supreme Court recently examined the issue of causality arising from a road traffic accident. The first-instance court had found the defendant guilty of causing death by want of precaution or carelessness and of driving a motor vehicle under the influence of fatigue. The Supreme Court rejected the subsequent appeal and confirmed that, despite having taken a simplistic approach, the first-instance court had reached the correct conclusion by applying common sense and experience.

Amendment of Judicial Practice Code
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 19 March 2019

The Judicial Practice Code was recently amended to provide that no judge, whether sitting alone or as a member of a panel of judges of an adjudicating court, can hear a case in which a party is represented by a lawyer who is a family member of the judge or works in the same firm or office as a family member of the judge. The recent media focus in Cyprus on the alleged impartiality of certain judges was the impetus behind the changes.

International Safety Management Code – instructions for recognised organisations
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 06 March 2019

The Cyprus Flag Administration recently imposed additional requirements on the development, implementation and certification of safety management systems over and above those which have been set out in the International Safety Management Code since 1998. The consolidated edition of the additional requirements replaces a previous version published in 2006 and recognised organisations are required to implement its terms and conditions immediately.

Issuance of tax residence certificates based on 60-day residence rule
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 01 March 2019

The Cyprus Tax Department recently issued a circular giving guidance on the tax residence provisions for individuals introduced by Law 119(I)/2017. The circular makes clear that an individual who holds office as a director of a Cyprus tax-resident company and delegates this office to an alternate or nominee director at any time during the tax year does not qualify for Cyprus tax residence under the 60-day rule.

Supreme Court revokes first-instance court's decision on statement of claim amendments
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 26 February 2019

The Supreme Court recently overturned a first-instance court's decision to reject a request to amend a statement of claim under Rule 25 of the Civil Procedure Rules on the grounds that the amendment amounted to a new cause of action. The Supreme Court found that the proposed amendments merely referenced actions by the defendants which supported their existing claim and did not amount to a new cause of action.

New statutory interest rate on judicial awards enters into force
Elias Neocleous & Co LLC
  • Litigation
  • Cyprus
  • 19 February 2019

The minister of finance recently announced that the statutory rate of interest on judgments pursuant to Article 33 of the Courts of Justice Law has been reduced to 2% per annum with effect from 1 January 2019. This rate will apply for the entirety of 2019.

Reference rates for notional interest deduction for 2019
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 15 February 2019

Article 9(B) of the Income Tax Law 2002 (as amended) provides for a notional interest deduction for tax purposes on new equity capital injected into companies and permanent establishments of foreign companies on or after 1 January 2015 to finance business assets, calculated by applying a reference rate to the new equity. The Tax Department recently announced the 10-year government bond yields for 31 December 2018, which will be used as the basis for the notional interest deduction for the 2019 tax year.

Safety zone in Cyprus Continental Shelf and exclusive economic zone – Stena IceMax
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 06 February 2019

The recent Ministerial Order on Safety Zones was published with the purpose of ensuring the safety of the Stena IceMax drillship and the safety of navigation during the period that it will be used to drill in the Cyprus Continental Shelf and exclusive economic zone. The order establishes a safety zone at a distance of 500 metres from the drillship. Unless a vessel has obtained the requisite licence from the Deputy Ministry of Shipping, it cannot (bar a few exceptions) enter, navigate or remain within the safety zone.

New Cyprus-Saudi Arabia double tax agreement enters into force
Elias Neocleous & Co LLC
  • Corporate Tax
  • Cyprus
  • 01 February 2019

The Ministry of Finance recently announced that the double tax agreement with Saudi Arabia – which was signed on 3 January 2018 – will enter into force on 1 March 2019. The agreement will apply to amounts paid or credited on or after 1 January 2020 with regard to taxes withheld at source and to tax years beginning on or after 1 January 2020 with regard to other taxes.

Amendments to the Code of the Maritime Labour Convention enter into force
Elias Neocleous & Co LLC
  • Shipping & Transport
  • Cyprus
  • 30 January 2019

The Deputy Ministry of Shipping (DMS) recently issued the 2016 Amendments to the Code of the Maritime Labour Convention. The amendments affect maritime labour certificates and declarations of maritime labour compliance. In this regard, the DMS has announced that existing certificates and declarations will remain valid until their expiry date.

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