We have witnessed the intense effects of COVID-19 all over the world, and during this period, no measures were taken or no expansions were made regarding the insurance sector, in fact, new tax applications were added to the sector. The Income and Corporate Tax Amendment Draft Law, which is still being discussed within the Republican Assembly Economy, Finance, Budget and Plan Committee, has been put into practice through a Decree Law despite strong objections.
Since we are condemned to a fate where laws and regulations are out of date while continuing to work hard to update them for the insurance needs and practices of our age, we must act in accordance with these current laws and regulations. While we can act in accordance, it is not something we should tolerate.
Every step should be taken to move the TRNC’s insurance sector and insurance practices onto the electronic platform. Our industry, with its technical infrastructure capacity, is precisely at this point; ready to keep up with the online electronic system.
The Ministry and the Directorate of Revenue and Tax Administration argue that we are not ready yet. Today, all insurance companies create an e-copy of the approved output for the policy, invoice and receipt with the permission of the presshouse complete with serial numbers, and the phrase "GVD Stamp Tax Has Been Paid" is written on the printout, with the permission of the Revenue and Tax Office. This is clearly a formality and practice from decades ago that is no longer practiced in any other country in the world.
The business world, and in particular the insurance sector, which re-opens with control and caution on 4 May 2020, must continue its activities in an electronic environment, undocumented, online, in its relations (including payment systems) with both its public administration and its insured customers. I would like to request and ask the Income and Tax Department and the Directorate of Money, Foreign Exchange and Development Fund Affairs that swift steps are taken to rectify and complete the missing features to make this transitionpossible.
Dağlı Insurance Chairman of the Board Ersan Dağlı