Little was done at a practical level either at the local or the EU level to ensure compliance, and now it has fallen to the US to bring about a change of direction.
Cyprus’ status rests on the ‘Cyprus business model’, which involves ‘introducers’ based in Cyprus developing business propositions for customers outside Cyprus, and then establishing companies in Cyprus and accounts with local banks.
Close connections have been shown to exist between these introducers – law offices, accountants and company formation agents – and senior politicians and bankers.
The Cyprus companies so established frequently rank as shell companies – they have no genuine trade.
Shell companies feature in tax avoidance and evasion, enjoying low or no taxation in their country of incorporation and benefiting from Double Taxation Treaties (DTTs) that the respective
... read more at: https://euobserver.com/opinion/143390