Andrew Adamides
OWNERS of scores of cars imported second hand from Japan could be in for a huge tax bill, after it emerged yesterday that Customs were probing the papers of vehicles believed to have been deliberately undervalued to avoid duty.
Although the case is still under investigation, a report in yesterday’s Alithia suggested that, if duties were found to be owed on any vehicle, the owners would have to pay up.
The paper claimed that, in some cases, the vehicles had been under-valued on their import papers by thousands of pounds. The evidence being examined by Customs is thought to be based on copies of Japanese price lists and the corresponding figures presented on the cars’ arrival in Cyprus, which are significantly lower.
In addition, it is thought that fake receipts may have been drawn up in order to convince Cyprus Customs officers that the vehicles were actually bought for lower prices than in reality.
In one specific case, that of a Honda Integra, the original sale price in Japan was the equivalent of £2,600, but the car’s value was given as £2, 100. Not only is this £500 lower than the actual cost, but it also fails to take into account shipping and insurance costs, putting the discrepancy at more than £1,000.
If the investigations come to fruition, it is thought that they could open the floodgates to countless prosecutions for similar scams.
A senior customs official yesterday confirmed to the Cyprus Mail that the cases were under investigation, although as the probe was ongoing, he was unable to reveal any details or the source of the documents.
He did, however, confirm that a considerable number of vehicles were involved.
Second hand cars imported from Japan have been selling in huge numbers on the island since they first started arriving several years ago, significantly affecting both the new and used car markets. The cars offer sky-high equipment levels at bargain prices, and even though they may be second-hand, are given new registration numbers when they come to the island, giving the all-important illusion that the vehicle is in fact brand new.
However, rumours about the falsification of documents on vehicles imported both by dealers and individuals have been rife for a long time, as these can significantly reduce the amount of duty payable.
The controversial Japanese imports have also stirred up rumours that some are rebuilt write-offs, or factory rejects that didn’t pass safety checks.
