Former minister investigated for paying no tax on golden handshake

FORMER FINANCE Minister Charilos Stavrakis has landed in tepid water with the Inland Revenue Department (IRD) over a significant sum of money he received from the Bank of Cyprus before becoming minister in February 2008. 

Stavrakis who as minister was also the boss of the IRD, stepped down from the ministry during a cabinet reshuffle last August, and is now being called to pay taxes on undeclared income, believed to be close to two million euros. The sum in question relates to the ‘golden handshake’ or ‘efapax’ received from the Bank of Cyprus on Stavrakis’ retirement from the bank back in 2008 after he was appointed minister by the new Demetris Christofias government.  

Stavrakis was first executive director of operations in Cyprus and acting chief executive officer of the Bank of Cyprus Group before he resigned. 

The former minister released a statement yesterday, explaining: “The IRD is of the opinion that part of this sum is taxable. My accountants hold the opposite to be true.” 

He added: “I have already submitted the relevant objections to the tax authorities and will follow the established procedures that every Cypriot citizen has at their disposal.” 

Asked to comment, Finance Minister Kikis Kazamias said yesterday he was confident that any loose ends would be tied up through the established procedures.  

 

 

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