Cypriot tax officials are increasing their scrutiny of social media content to identify potential tax evasion. Local reports indicate that Sotiris Markidis, the Republic’s Tax Commissioner, has confirmed the launch of a new monitoring system aimed at spotting signs of extravagant lifestyles.
Markidis stated that the tax authority now utilizes a specialized mechanism to track social media activity. “We have a system in place to oversee social media, and if necessary, we conduct investigations, as we have done in the past,” Markidis said.
The tax inspectors are focusing on posts that showcase expensive cars, luxury vacations, parties, and other indicators of wealth. Discrepancies between reported incomes and visible lifestyles could lead to field audits to uncover possible tax evasion.