I adduced the crucial reference for you in your question, and the crucial missing statement, so it makes sense.
- A theory is CP-invariant if the Lagrangian, and so the Hamiltonian, commutes with the CP operator, $[H,CP]=0$, that is, it is invariant under
$$ CP~H ~(CP)^{-1} = H.$$
This means that the eigenvalue of the Hamiltonian under a CP operation is +1, so it is even.
By contrast, if the Hamiltonian has an odd piece, so H is not even, so a piece of it changes sign under CP, the theory violates that symmetry.
Your reference is investigating the Yukawa terms
\begin{equation}
\mathcal{L}_{\mathrm{Y}}=-\frac{m_\tau}{v}h(\kappa_\tau\overline{\tau} \tau +\tilde{\kappa} \overline{\tau} i\gamma_{5} \tau )\tag{1,2}\\
= -\frac{m_\tau}{v}h\kappa_\tau(\overline{\tau} \tau + i\tan (\alpha)~ \overline{\tau} \gamma_{5} \tau ),
\end{equation}
which extend the standard model result. The first term is the SM Higgs coupling, even under CP, but the second is odd, parameterized by the angle α, so that term is violating CP . The α =0 limit is the SM.
N.B. The SM also violates CP by just a little on account of phases of the CKM matrix comparing the three generations, but that is a separate effect, independent of this Higgs coupling, and, as stressed, very small. Here, the emphasis is on a larger effect due to additional Higgses, not covered here, which result in the above effective term. They are there, however, prejudicing the next subquestion.
- Under a chiral rotation, the kinetic and gauge-coupling terms for the fermions are invariant, but not the above gamma-less bilinears, scalar and pseudo scalar, respectively. Under such a transformation, the two terms above mix. If there is only one Higgs, as in the SM, even if you had the above (2), a chiral rotation would get rid of α, and absorb it into the definition of the fermions such as this one. The reason you cannot do this in the general extended theories is because the h here is a linear combination of scalar and pseudoscalar Higgses which might be there, and are physical, i.e. a chiral rotation may not eliminate them. No mater how you redefine your fermions, the general form above is there, to be determined by experiment. See the linked questions and especially this one. The above h is thus taken to be a scalar, even under CP, so, manifestly, the second term violates CP for non-vanishing angle.