Account blocked "just in case"

Nobody sends debtors letters about arrears, and neither the court nor the bailiffs bother them.

For some people, this easygoing atmosphere can play a cruel joke.

The tax authority in Cyprus behaves very casually: it seems not to care at all whether you pay your taxes or not.

The situation

A stock trader came to us after his bank suddenly blocked his personal account.

The bank that served him had started a standard KYC (know your customer) procedure. The standard KYC package includes a passport, a residence card, a tax return for 1-3 years and proof of address in Cyprus, usually a utility bill.

The bank's request came as a surprise to the client, and he was able to provide all the documents except the tax return.

The request

The client needed to regain access to his bank account. This required urgently preparing and filing a tax return, paying the tax and providing the missing documents to the bank.

The lawyer's advice:

By law, an individual who is a Cyprus tax resident must file a return as a self-employed person, with audited financial statements, if their annual income exceeded €70,000.

The client either did not know about this rule or simply ignored his obligation after hearing from acquaintances that "nothing will happen". The tax authority really had made no claims; the trouble came from where he did not expect it.

The result

A WhiteWins tax lawyer helped the client prepare and file the return in a short time.

Thanks to the regular working contacts of WhiteWins lawyers with the client bank's KYC department, access to the account was restored the day after the required documents were submitted.

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