PRESIDENT Tassos Papadopoulos yesterday met yesterday with the Holy Synod for well over two hours to discuss the issue of taxes and the Church.
Speaking after the meeting, Papadopoulos said it was likely that a solution would be found to the problem of taxing the Church, which is currently exempt. He said the issue ought to be resolved without recourse to legal measures.
Papadopoulos said that no actual proposals or counter-proposals were made at the meeting. “We will examine the probabilities and possibilities to find a solution,” he said. “There are disagreements, but we do not believe it should be resolved through the courts."
He said opinions had been exchanged and a climate of good will had prevailed.
Bishop Chrysostomos of Paphos, who chaired the Synod meeting, said the bishops had agreed with the President that there was no reason to resort to the courts.
The government has been having low-profile discussions with the Church to pay £40 million in taxes in its efforts to battle the fiscal deficit. But its hopes of getting the organisation to pay rest solely on the good will of the Church.
The state believes that the Church should begin to pay taxes on its business activities and property transactions, starting with the £40 million that the Church would be obliged to pay if it were currently paying taxes.
If the state were to tax the Church now, they could expect to extract £34 million from property transactions and £6 million in capital gains tax.
However, the constitution does not permit the state to ‘demand’ taxes, or repossess property in the case of tax arrears. Any decision to pay taxes rests solely on the Church’s desire to do so.
"The issue is being discussed in a spirit of good will by the government and by the Church and I believe that finally a happy medium will be found,” said Papadopoulos.
Papadopoulos also briefed the Synod on the Cyprus issue.