New year, new hopes, new challenges

Eventually, 2023 is here! Having passed 2 unprecedented years coping with the covid 19 pandemic and a phenomenal 2022 carrying the effects of the Russian invasion in Ukraine and the surging inflationary economies, we look at new year with a hopeful and an optimistic glance.

However, the new year brings along much more than the above. It is actually a testing field for economic and social challenges, coupled by the introduction of new words in our casual vocabulary, such as Generation Z, ESG, cyclical economy, inflation, etc.

My feeling is that it would be a pivotal year, during which we shall be called to keep various equilibria, maintain balances (political, social, economical, financial), take sides (mainly in the international political scene), retrain and upskill, adapt to the digital transition and administer the content, effects and repercussions of the trifold ESG (Environment, Social, Governance) in a manner that would entail preservation of the natural and human resources as well as the sustainable development of economies and communities.

The new socioeconomic landscape that is being formed around Cyprus and globally is characterized by factors that were taken for granted in the last years, namely cost of energy, cost of money, labour cost and conditions, inflation and last, but not least, the public finances of the countries. Given that the prices of goods and cost of living are surging, interest rates and energy price is increasing, the public finances face difficulties as governments tried to mitigate the effects of the Covid-19 pandemic and to contain the purchasing power of the households, it appears as inevitable for all of us to adjust to the prevailing conditions and adapt to the new realities. Another aggravating factor is the uncertainty and liquidity of the landscape, deterring us from making long term plans, looking however to the short term for mitigation and preservation.

In this scenery, we are also called to integrate the new generation of young people into the current society, a generation that bear different characteristics, priorities and perceptions than the elder. A generation raised with the privileges of the well being of the previous years, without having presentations of other eras.

The above apply of course to our profession, apply to businesses and to the economies in a wider sense. It is an adjusting period for all of us, repositioning priorities, cutting down unnecessary wastefulness, preserving resources and redefining goals. There is no other way…

We find ourselves in a game of the survival of the fittest where the most adaptive species shall be able to advance. These are times that need for collective actions and cooperation between the whole spectrum of stakeholders, try to cut away unnecessary cost, make the ultimate use of all available resources, whilst capitalizing on the comparative advantages and competitive edges, seeking innovation and digital applications, in order to remain abreast and stand out from competition and peers.

Usually, challenging times give rise to more opportunities. This is where we should focus on, that is, identify the opportunities offered, differentiate from the rest of the herd and though a well-thought planning, try to rise above the stirred waters in a pursuit for a sustainable personal, business, social and state growth and prosperity.

Accountancy Cyprus

ISSN 1450-2380

The Institute Council Pieris Markou (Chairman) Nicos Chimarides (Vice-Chairman)

Eleni Pyrgou (Secretary)

Members

Andreas Andreou, Andreas Avraamides, Odyseas Christodoulou, Stavros Ioannou, Gabriel Onisiforou, Maria Pastellopoulou, Petros Petrakis, Demetris Siakallis, Spyros Spyrou, Demetris Taxitaris, Demetris Vakis, Christos Vasiliou

General Manager

Kyriakos Iordanou

Address

11 Byron Avenue, 1096 Nicosia, Cyprus

Mailing Address

P.O.Box 24935, 1355, Nicosia, Cyprus Tel.: +357 22870030

Fax: + 357 22766360 e-mail: info@icpac.org.cy www.icpac.org.cy

The publication is prepared by FMW Financial Media Way

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Design and Pagination: Christiana Loizou

Accountancy Cyprus is published quarterly by the Institute of Certified Public Accountants of Cyprus and is send free to all members of the Institute as well as to a large number of other persons, companies and organisations. The Institute can accept no responsibility fot the accuracy of contributed statements or articles appearing in this publication and any views or opinions expressed are not necessarily endorsed by the Institute, its Council or by the Editors.

08 Icpac News

• International Compliance Certification in Anti money Laundering for CBA & ICPAC members

• Launch of ICPAC's AML-CFT Certification

• New initiatives to expand Cyprus-Greece business cooperation

• ICPAC Kicked Off the first bi-annual virtual PAO Knowledge Exchange for Accountancy Education Directors in Middle East and North Africa (MENA) region, launched by the International Federation of Accountants (IFAC)

14 Interview

PRESIDENT NIKOS CHRISTODOULIDES

The comprehensive tax reform is one of the key policies of our Governmental programme

18 COVER STORY

• The Tax issue

ICPAC: Urgent need for a new tax reform

20 The Tax Issue

• INSIGHT: Treaty Shopping—Is the New Principal Purpose Test a Game Changer? [PART 2]

Christos A. Theophilou Taxand Cyprus | Partner | International Tax –Transfer Pricing

• Business in Europe: Framework for Income Taxation

Petros Krasaris Partner Head of International Tax and Transaction Services at EY Cyprus

• VAT on financial services and fintech: The story of the CFO and the need for reform George Liasis, Partner - Indirect Tax at EY Cyprus

28 AUDIT & ACCOUNTING

• From Financial to Corporate Reporting

Pantelis Pavlou Director and a member of the Central, Eastern and Southeastern Europe & Central Asia (CESA) IFRS team at EY

30 Insolvency

• Why Do Examinerships Fail? The Case of Cyprus Socrates Socratous Managing Director Revita Turnarounds Ltd

BUSINESS & ECONOMY 32

• Confirming the Illegality of UBO Registry Public Access

Pantelis Christofides Advocate – Director, Head EU & Regulatory Law Department, L. PAPAPHILIPPOU & CO LLC Advocates & Legal Consultants

• ICPAC’s crucial role in the development of the tourism industry

Angelos Loizou ISHC Chairman of the Hospitality Industry Committee ICPAC / Special Advisor of The Association of Cyprus Tourist Enterprises (ACTE)

• Factoring and Supply Chain Finance

Paris Georgades Manager Factors, Bank of Cyprus

A Surprising Downside To Growing Our Careers (That Nobody Talks About)

• Antigoni Marinou, FCA GCDF CT CSMM MSc BA(Str), CEO of Rokket by Antigoni Marinou, A bespoke Coaching & Training House

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