House committee launches its own investigation into Church tax debts

THE HOUSE Watchdog Committee will carry out an investigation into the dispute over the Church’s tax arrears after it transpired last week that the figures given by the Inland Revenue Department (IRD) were wrong.

The official data of the IRD indicated that the Church owes €169 million – €138 million in immovable property tax and €30 million in capital gains tax, including interest.

Last week however, the government conceded there was a mistake in the calculation of what the Church owed to the state.

The finance ministry has already launched an investigation headed by the ministry’s permanent secretary.

But George Georgiou, chairman of the House Watchdog Committee, said yesterday that his committee is opposed to this investigation, “as the Ministry is itself liable” at least partly, for the dispute.

“I want to emphasise that the Ministry of Finance should not be looking for witches outside the Ministry. The witches are located within the ministry,” Georgiou said.

He warned against victimising any ministry employee over the matter. “Everyone knew about this issue when they were putting together a deal with the Church in 2005, which was initiated by the finance ministry,” Georgiou said.

Archbishop Chrysostomos last week urged the government to accept the deal – made with the previous administration – and settle the matter.

That deal was never tabled before the cabinet for approval at the time and the auditor-general said it was unfair to the state.

“So as Watchdog Committee we are not in agreement with the ongoing investigation that the finance ministry’s permanent secretary is undertaking, precisely because the ministry itself has been involved in the situation, which is not only months old, but has been to the ministry’s knowledge for years,” he added.

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