Gold Magazine June - July 2013, Issue 27 | Page 69

KPMG LIMITED

ensure we remain up-to-date and maintain
our competitive edge and attractiveness to
shipping groups. I believe we lost sight of
this in other sectors and, as a result, lagged
behind other countries, particularly as a
tax structuring destination. The same mistake should not be made for our tonnage
tax system. Also, competing EU regimes
should be monitored on an ongoing basis
and any deviations from the EU guidelines
on state aid to maritime transport should
be reported as this leads to unfair competition. Government departments also need
to embrace e-commerce as competitive regimes allow a lot of business to be carried
out online and in real time, allowing foreign groups to work in a familiar environment. The working hours of government
departments must also be reviewed as
these do not always make sense to foreign
investors working in separate time zones.
Ultimately, the biggest boost to Cyprus’
shipping industry would come from the
lifting of the Turkish embargo of our flag,
and although this is not necessarily in our
Government’s hands, it must become a
priority to seek an agreement with Turkey
even as part of a ‘goodwill’ gesture ahead
of any settlement to the Cyprus problem.
How important is the Tonnage Tax
system to the shipping companies that
are already established in Cyprus and to
potential new ones?
Our tonnage tax regime is the centrepiece
of our shipping industry. In my experience, shipowners in particular always
prefer a tonnage tax system to a