Bishop argues against the Church paying tax

PAPHOS Bishop Chrysostomos yesterday said it would not be to anyone’s benefit if the six bishops of the Church of Cyprus were taxed by the state because the amount paid would be very small.

Reacting to recent discussion on the issue, Chrysostomos said that bishops were not paid wages, rather they were given grants by the Church which are used to help the poor and needy.

“This grant is given by the Church so that a bishop can reach into his pocket without counting or signing receipts, and give help to a needy or ill brother,” Chrysostomos said.

“This grant should not be taxed,” he added.

He said the potential tax amount paid by bishops would be negligible and would not benefit anyone.

Chrysostomos defended the Church’s business activities, arguing that the development of property is not done to benefit bishops but to help the Church fulfil the task of helping the people.

“The Church tries to use its property to accomplish its work for the good of the people and the country,” Chrysostomos said. “It is not for the bishop to live better.”

On Monday, Government Spokesman Michalis Papapetrou revealed that the issue of taxation of Church property has been the subject of ongoing talks between the Finance Minister and the Church.

Papapetrou said the talks focus on taxing business activities, including real estate development.

On the taxation of bishops, Papapetrou said on Monday that according to an attorney-general ruling in 1965, the Archbishop and the six bishops of the Church of Cyprus are exempted from paying income tax because “they do not practise a profession”.

Only the Kykkos Monastery in the Paphos district currently pays tax on its property after an agreement with the state, Papapetrou said.

Church-owned property is worth many millions of pounds, but not a single cent has been paid in taxes since the inception of the republic.