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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
The Supreme Court recently rejected an appeal against a detention order issued by the Larnaca Permanent Assize Court in a sexual assault case. The appellant claimed that the evidence placed before the first-instance court had speculated on his guilt and the risk of him absconding. However, the Supreme Court found that the accused's detention until trial was at the discretion of the first-instance court and that, based on the circumstances of the case, the court had exercised this power correctly.
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.
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.
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.
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.
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.
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.
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.