Gold Magazine March - April 2013, Issue 24 | Page 20

COVER STORY

promote Cyprus
tourist destination can also
promote the island
to do business

The budget used to
as a
be used to
as a place
the supervisory framework of the financial
services sector will also have a substantial
effect on our ability to regain credibility as
a financial services centre. There are other
measures too. In the competitive business
environment in which we are operating,
speed and efficiency are imperative. Our
objective is to treat foreign investors as
clients and our system needs to be clearly
client-oriented.
Gold: What do you plan to do to accelerate the process of registering companies? Today, most of Cyprus’ competitors commit to and deliver registration
within 24 hours.
N.A.: The time needed to register a company must be reduced significantly – a
six-month time frame must be set to fully
automate procedures, taking into consideration the systems put in place by the UK
and Malta. Most countries competing with
Cyprus offer approval of a company name
within 24 hours. That is my government’s
aim. The Registrar of Companies must set
up a section that will immediately respond
to investors’ enquiries. Additionally, the
Inland Revenue Department (IRD) needs
to be fully computerized and it must also set
up an international tax affairs section. Very
high on our list of priorities is the setting up
of a one-stop shop, under the Cyprus Investment Promotion Agency (CIPA), which will
be given specific administrative powers so as
to coordinate various government departments such as the Registry of Companies
and the Inland Revenue Department (IRD).
Personnel from the VAT service, the department of social insurance, and the department dealing with residence permits must
be seconded to help with a one-stop shop.
Overall, procedures in the public sector
must be simplified and to this end we will
appoint a Presidential Commissioner whose
terms of reference will focus on cutting
down unnecessary processes and combating
bureaucracy. We will also introduce Enterprise Centres which will provide all kinds
of services to businessmen and will operate
based on the model on which the Citizen
Service Centres currently operate.

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cover story.indd 20

Gold: Cyprus’ European and international
competitors allocate large sums for promoting their jurisdictions as attractive and
successful financial centres. The Cyprus
Investment Promotion Agency (CIPA)
lacks the funds to undertake a diversified
and effective marketing campaign to promote Cyprus on the same scale. How do
you plan to support CIPA?
N.A.: CIPA needs to be upgraded and its
powers extended so that it can operate not
only as an advisory body to the government
but as the main vehicle for identifying potential investors from abroad, both for public
sector projects and for the private sector.
Money is definitely needed if we are going to
place advertisements or have a presence in the
international media. In this respect I will pursue better cooperation and leverage between
CIPA and the Cyprus Tourism Organisation
as the latter has a large budget at its disposal
for promoting Cyprus abroad. Currently that
budget is used to promote Cyprus solely as a
tourist destination but it can also be used to
promote the island as a place to do business.
We need to build the brand of Cyprus as a
country and as a quality business destination,
as other jurisdictions do. I believe strongly
that it’s not a matter of spending more money but of spending money more wisely.
Gold: Financial sector professionals in Cyprus have told us that a major deficiency
concerns the need for legislation covering
the establishment of contemporary financial products. Under your presidency, will
Cyprus achieve the long-awaited modernisation of the financial sector’s legal
framework?
N.A.: Cyprus must pass legislation
to modernize its framework. It has
been the professionals’ view for
some time that we should establish
as a priority the necessary legislation for the registration of international funds in Cyprus – Malta has
already done so very successfully
– and of private jets. Also, after so
many years of discussion, debate
and stressing the need to put the
necessary framework for leasing in
place, it is about time we did it.

Gold: It has also been noted repeatedly by
the professionals that any respectable financial centre should have at least one major
international bank.
N.A.: Yes indeed and I have to say that this is
an area in which I will be personally involved.
I agree that we need to attract a foreign international bank and I am hopeful that we will
succeed.
Gold: The number of double taxation treaties that Cyprus has signed is often cited as
an advantage but many of the treaties are
outdated and need to be renegotiated (e.g.
with USA, Greece, India and Kazakhstan).
At the same time Cyprus needs to draw up
agreements with countries such as Brazil,
Mexico, Argentina, Japan, Australia, etc.
How high is this matter on your list of priorities?
N.A.: Our network of bilateral agreements
for the avoidance of double taxation needs to
be strengthened and expanded to cover more
countries, especially emerging economies.
I intend to create a dedicated tax team for
double taxation treaties which will review the
current agreements and negotiate their updating as well as engage in discussions on the
drafting of new treaties. I am also committed
to the establishment of a special Tax Advisory
Board comprising technocrats from the public and private sectors, with the purpose of
proposing institutional changes and following
developments in other competing jurisdictions.
Cyprus has to keep up with the times and the
competition in order to remain a competitive
business centre.

The further
enhancement
of the sector is
at the top
of my agenda

THE INTERNATIONAL INVESTMENT, BUSINESS & FINANCE MAGAZINE OF CYPRUS

11/03/2013 08:48