A person’s lifestyle often reflects their financial standing. The clothes they wear, the home they live in, the car they drive, and even the holidays they take all reveal much about their income and social status. In today’s consumer society, wealth is frequently expressed through the display of possessions and access to luxury services.
An official from a semi-governmental organisation, known for flaunting his wealth, has found himself in a difficult position after being reported to both the Tax Department and the Anti-Corruption Authority. The complaint, submitted anonymously for obvious reasons, includes allegations of concealed income. It is accompanied by photos and social media posts showing the official’s lifestyle, which, according to the complainants, does not match his declared income. The report suggests that his apparent wealth may stem from abuse of power or acts of corruption.
The investigation
Under the law governing the establishment and operation of the Independent Authority Against Corruption, the Authority may investigate anonymous complaints such as this one. The legislation provides that, when examining or assessing an anonymous report, the Authority must rely on the information available to it. If the evidence is deemed insufficient, it may proceed with further inquiries to determine whether the case can be effectively investigated within its mandate.
During its preliminary assessment, the Authority found that “the allegations contained in the complaint are general and vague, as they are not supported by specific or substantiated evidence suggesting acts of corruption.” Consequently, the Authority concluded that “the investigation of potential tax evasion falls under the jurisdiction of other competent bodies, to which this complaint has already been forwarded.”
The decision concludes: “In light of the above, and as no acts of corruption as defined by law are substantiated, any further procedure is terminated and the complaint is filed.”
Although no acts of corruption were confirmed due to a lack of evidence raising reasonable suspicion, the official in question remains under review by the Tax Department.
Anonymous complaints: Evidence still required
The legal framework allows for the submission of anonymous complaints to the Anti-Corruption Authority. However, individuals who file such reports cannot be informed of their progress. To ensure transparency, the Authority publishes on its website the decisions it issues regarding how anonymous complaints are handled.
The Authority has had to dismiss numerous anonymous complaints against public officials for being too general or unsupported by evidence, as was the case here. Furthermore, it is often impossible to contact anonymous complainants to request additional information or clarification.
For this reason, the Authority recently urged citizens who wish to submit anonymous complaints to include as much information and supporting evidence as possible, to enable thorough and effective investigation.
Three ways to submit a complaint
Complaints to the Anti-Corruption Authority must be made in writing, using one of the following methods:
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By hand delivery or post to the Authority’s offices at 10 Markou Drakou Street, 1040 Nicosia.
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By fax to +357 22756414.
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By email to complaints@iaac.org.cy.
Both named and anonymous complaints, now exceeding 500 in total, must be submitted using a standard formavailable on the Authority’s website.
Complaints should include factual references that, in the complainant’s view, substantiate the alleged offence, and should clearly name the individuals involved. Ideally, complaints should also be accompanied by documents or other evidence, which can greatly assist in their examination and investigation.
High-risk officials for tax evasion
The Tax Department maintains a separate register of state and elected officials classified as Politically Exposed Persons (PEPs). In recent years, special emphasis has been placed on ensuring the tax compliance of such individuals, whose tax returns are handled as high-risk cases, subject to additional scrutiny and detailed checks.
It should also be noted that, under recently adopted legislation, when assessing “source of wealth” (Pothen Esches)declarations, the Tax Commissioner is fully empowered to exercise all authorities granted under tax law. The Commissioner may also utilise all available tools and information sources - including social media - when evaluating the accuracy of declarations.