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News
Property showdown in northern Cyprus
Expats who own property in north- the family of Mr Apostolides, a Hove in order to meet the pay- specific issues in the reference.
ern Cyprus are facing a potential Greek Cypriot. ments needed for compensation. We will study the ECJ judgment
legal challenge to their right of When the restrictions on travel The English High Court ruled carefully and consider our next
ownership. across the “Green Line” which that the judgment could not be steps.
In what as being widely per- divides Cyprus eased in 2004, Mr enforced in England because EU “However, we also call on the
ceived as a test case, the European Apostolides served proceedings on law is suspended in northern leaders of both the Greek and
Court of Justice (“ECJ”) gave judg- the Orams in the courts of southern Cyprus under Protocol 10 to the Turkish Cypriot communities, the
ment at the end of April on a pre- Cyprus claiming for return of the Act of Accession of Cyprus to the EU and the UK Government to find
liminary reference in Apostolides v property and damages. Having EU. Mr Apostolides then appealed a solution to the property disputes
Orams C-420/07, which was obtained a default judgment from to the English Court of Appeal. between the two communities
referred to it by the Court of the courts in the Republic of The Court of Appeal used its which allows ordinary citizens, who
Appeal in the UK. The case con- Cyprus, he then sought to enforce power to refer specific questions of bought property in good faith, to
cerned a judgment relating to a the judgment in England when the EU law to the ECJ for a preliminary avoid being caught up in litigation
property in northern Cyprus, Orams’ appeal on these orders was ruling. The ECJ has ruled that none over the consequences of the con-
which David and Linda Orams, a still pending. of those questions provide a basis flict between the two communities
retired English couple, purchased The Orams were placed in an for the English Court to refuse to in Cyprus.”
in 2002. The court has ruled impossible position because they recognise and enforce the judgment More than 5000 EU citizens own
against the Orams. could not, under the laws of the in England. property in northern Cyprus.
The property was sold to them TRNC, return the property to Mr The case will now go back to the Many are from the UK, but there
by a Turkish Cypriot under the laws Apostolides as the judgment Court of Appeal for further consid- are also significant numbers from
of the administration in Northern required. They therefore faced eration. The Orams will study the other states including Sweden,
Cyprus (the Turkish Republic of ongoing payments and potentially ECJ judgment and consider their Germany and Bulgaria. There are
Northern Cyprus: TRNC). But – other sanctions such as contempt of next steps. also 220,000 people living in the
prior to the intercommunal conflict court. The Orams commented: “It UK who have direct or indirect
and the division of Cyprus in 1974, This could have meant the is disappointing that the ECJ family connections to property in
the property had been owned by Orams having to sell their house in has ruled against us on the northern Cyprus.
Cayman Islands defends
Spain has poor case
offshore tax policies
on tax
The head of the Cayman Islands
The European Court of Justice’s or the other, I’d much rather be
Financial Services Association has
Chief Minister Peter Caruana said representing our case than theirs,
claimed that his country is receiving
that Spain faces an “uphill task” if which seems a very uphill task.”
unfair and unjustified criticism
it decides to challenge the ruling The European Commission has
from the United States with regard
on regional selectivity regarding also appealed against the court’s
to its offshore tax policies.
the Gibraltar tax case. decision in the Gibraltar tax case.
“What does trouble us to the
described the Cayman Islands as a
The court’s decision in 2008 This is, however, on different
point where we are bemused, both-
tax haven. Earlier this year a con-
meant Gibraltar could operate a grounds which exclude the critical
ered and bewildered is the rhetoric,
gressional report claimed the US
different tax system to the UK, issue of regional selectivity.
the constant reference to Cayman,”
loses about $100 billion to tax
and is considered to be essential to
said Tony Travers.
havens annually.
the Rock’s future as a respected
He added that the Cayman
As a result Obama has declared a
EU financial centre.
Islands has been incorrectly placed
commitment to curb offshore tax
But Spain announced that it
in the same category as uncoopera-
havens and to clamp down on cor-
planned to appeal against the deci-
tive tax havens such as Andorra,
porate tax breaks.
sion. It also intends to include the
Monaco, and Liechtenstein.
The President is widely seen
regional selectivity issue in its
“The reality of the situation is we
as determined to collect billions
challenge.
have a full transparency treaty with
of dollars more from multi-nation-
Mr Caruana said he had now
the United States, Travers contin-
al companies and wealthy US
seen Spain’s court filing and was
ued. The Cayman Islands is “an
citizens.
confident that it would not pros-
accomplished international finan-
Obama appears intent on fulfill-
per.
cial centre, supported by an impres-
ing his campaign promise to end
“I think it’s long on politics and
sive list of professionals who are
tax breaks “for companies that ship
short on legal merit,” Caruana
able to offer a broad range of serv-
jobs overseas.”
said.
ices.”
He stated the changes would
“They are looking at the issue of
In a recent White House speech
raise $210 billion over the next
regional selectivity but if I had to
President Barack Obama had
decade.
be a lawyer representing one case
June 2009 Investment International www.investmentinternational.com
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