The Legal Service has ordered a criminal investigation into a senior Tax Department official after confidential tax returns belonging to prominent businesspeople and a former President of the Republic were found in her possession.
The investigation follows a complaint submitted by Tax Commissioner Sotiris Markides, after the documents emerged during a separate investigation by the Independent Authority Against Corruption into allegations made by the official herself.
The tax records had been used by the employee in an attempt to substantiate allegations of corruption within the Tax Department and claims that she had been subjected to retaliatory treatment.
Documents examined during corruption investigation
The Anti-Corruption Authority initially determined that the official's allegations warranted investigation and appointed three lawyers as inspection officers to examine them.
During that investigation, the senior official disclosed that she possessed the tax files in question.
The inspection officers examined the documents despite being aware that, according to the report, they were not lawfully in her possession.
The Authority ultimately found no evidence supporting the corruption allegations.
After completing its investigation, it informed Markides both of its findings and of the confidential tax records held by the employee. The documents were subsequently returned to the Tax Department.
Markides then reported the matter to the Attorney General, leading to instructions for a criminal investigation.
Access to the tax files concerned, which relate to current and former state and elected officials, is restricted to senior Tax Department officers.
Investigators to examine intentions
The criminal investigation is expected to examine how and why the official obtained the records and what she intended to do with them.
According to the report, investigators are expected to consider whether there was any intention to use the information for blackmail or to make it public, potentially damaging the Tax Department, the former president and his family, or the businesspeople whose records were obtained.
The official is reported to have an existing dispute with at least one of the businesspeople involved.
No conclusion has been reached on those questions, which remain matters for investigation.
Corruption allegations rejected
According to Politis, the senior employee provided the tax files to the three inspection officers while pursuing allegations of possible corruption and abuse of power, retaliatory behaviour, targeting and reprisals.
Her complaints were directed against the Tax Department, its officials and successive supervisors.
Among the allegations examined were claims that:
- Tax revenue had been lost because of the way specific legislation and internal procedures were applied.
- Complaints she had raised since 2014 about alleged breaches of tax legislation had not been investigated and corrective action had not been taken.
- She had suffered reprisals, unfair or retaliatory treatment, reassignment and marginalisation because she had raised those concerns.
Authority found no abuse of power
After preliminary examination, the Anti-Corruption Authority decided to conduct a full investigation and appointed three lawyers specialising in criminal cases and whistleblower protection as inspection officers.
Its findings were announced on 4 February 2026.
Regarding the conduct of Tax Department officers and senior officials, including the Tax Commissioner, as well as other potentially involved individuals, the Authority concluded that the evidence did not establish abuse of power.
It also found no ulterior purpose, breach of hierarchy or intention to intimidate or retaliate against the complainant.
Her reassignment was found not to constitute a retaliatory action, but rather to fall within the relevant authorities' powers and to have been adequately justified.
Despite her claims that she had been marginalised and left without duties, the investigation found that work had been assigned to her but was not completed satisfactorily because of absences and limited cooperation.
The Authority concluded that the evidence did not establish acts of corruption, abuse of power, intimidation or retaliation.
Authority questioned reliability of testimony
The Anti-Corruption Authority also commented on the complainant's evidence.
It said her testimony was assessed alongside documents, witness evidence and the statements provided by other individuals during hearings.
However, the inspection officers ultimately preferred the evidence of the other witnesses, stating that the complainant's account contained ambiguities and weaknesses that limited their ability to rely on her version of events.
Separate disciplinary investigation
A disciplinary investigation had also been ordered against the official concerning a separate matter.
That process was suspended pending completion of the Anti-Corruption Authority's investigation and the publication of its findings.
The official was also suspended from duty on 2 September 2022 following a decision by the Public Service Commission.
She maintained that her suspension amounted to retaliation for the allegations she had made and sought protection under legislation covering whistleblowers.
Complaints taken to multiple institutions
The senior official had also approached ministries, independent authorities, Parliament, media organisations and the Presidential Palace in an effort to advance her allegations.
Those claims were subsequently examined by the Anti-Corruption Authority and found to be unsupported by the evidence presented.
Attention now turns to the separate criminal investigation into the confidential tax documents and the circumstances under which they came into the official's possession.
