Errors found in Cyprus Covid support
In an inadvertent error by the Cypriot state, support payments totaling 13.82 million euros were extended to 152 cases that had failed to meet subsidy criteria under the terms and conditions of the project to support businesses from the effects of the pandemic. While a significant portion of the reimbursement issue has been addressed, approximately €2-3 million remains outstanding.
Responding to MP Irene Charalambidou’s inquiry about managing the mistake of providing state sponsorship to ineligible entities through the State Support Scheme for Enterprises and Self-Employed Persons, Finance Minister Makis Keravnos explained that an investigating officer was appointed in July 2021 to conduct an administrative investigation into the Department of Taxation.
The aim was to identify reasons for erroneous payments to non-beneficiaries under the State Sponsorship Scheme subject to VAT and determine liabilities.
The challenge lies in the pending cases of 42 companies receiving support in error, with 35 facing legal proceedings to recover funds and seven submitting rejected objections. Additionally, seven individuals receiving state support totaling €0.6 million have appealed to the Administrative Court.
