Daily News Egypt

Tax Authority expects to collect EGP 20bn following resolution of tax disputes - Daily News Egypt

Advertising Area




Advertising Area




Tax Authority expects to collect EGP 20bn following resolution of tax disputes

Approximately 20,000 cases of tax disputes have been awaiting court verdicts since 2003, with taxes valued at EGP 40bn


Interim President Adly Mansour issued a presidential decree with a new law on 14 December permitting reconciliation in the current disputes between the taxpayers and the Tax Authority.  AFP PHOTO / HO / EGYPTIAN PRESIDENCY === RESTRICTED TO EDITORIAL USE - MANDATORY CREDIT "AFP PHOTO/HO/EGYPTIAN PRESIDENCY" - NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS ===
Interim President Adly Mansour issued a presidential decree with a new law on 14 December permitting reconciliation in the current disputes between the taxpayers and the Tax Authority.
(AFP PHOTO)

The Tax Authority is looking to collect between EGP 20-25bn through implementing Presidential Decree 163 for 2013, which allows reconciliation between the authority and taxpayers, according to a statement from the Ministry of Finance.

The tax disputes awaiting court verdicts amount to approximately 20,000 cases going back to 2003, with taxes valued at EGP 40bn, said the statement.

Interim President Adly Mansour issued a presidential decree with a new law on 14 December permitting reconciliation in the current disputes between the taxpayers and the Tax Authority. This comes in regards to cases currently registered in all courts, including the Court of Cassation.

Mamdouh Omar, head of the Tax Authority, was quoted in the statement as saying that implementing the decision would “restore the trust between the authority and taxpayers, contribute to reducing the tax disputes and increase the resources of public treasury.”

“This decision is one step forward toward reforming the investment climate,” Omar said, adding that reconciliation would attract capital and lure investment.

According to the new reconciliation law, taxpayers who are willing to resolve their disputes are required to submit a request to the authority along with a certificate proving that the tax case is still ongoing in the court. The tax case will be suspended for nine months until both parties reach reconciliation, and accordingly, the authority will refer the case to a judicial committee that will study the dispute.

The decision of this committee will be ratified by the head of Tax Authority and the Minister of Finance “or whoever is delegated to resolve the dispute”, the law stated.

Under the new law, the taxpayer is allowed to pay his tax on installations, but if he does not demonstrate commitment to payment, the Tax Authority has the right to refuse the reconciliation and hand the dispute to the court once again.

Tax revenues reached EGP 80.3bn in the first six months of the current fiscal year, the Tax Authority said. Income tax revenue amounted to EGP 51.1bn and sales tax was valued at EGP 29.2bn from 1 July until 10 December.

This revenue indicates a 19% (EGP 1bn) increase compared to the corresponding period last year, where tax revenue in the Central Bank of Egypt amounted to EGP 49.81bn.

Omar had earlier stated that the target tax revenue is estimated at EGP 325bn.

Advertising Area



https://dailyfeed.dailynewsegypt.com/2013/12/21/tax-authority-expects-to-collect-egp-20bn-following-resolution-of-tax-disputes/
Breaking News

No current breaking news

Receive our daily newsletter
Subscribe