According to the Egyptian tax regulations and practice, all companies are subject to various tax inspections regarding corporate tax, Salary tax and Stamp duty on a regular basis, not randomly. There is a limited period for the tax department to perform an inspection, which is five years from the end of a taxable period. In case if there is no inspection carried out within five years, the company declaration of taxes due is considered final.
The tax authority inspects the company based on its documents and records in order to assess the total tax dues on the company and determines the difference in tax dues as per the company declaration and the tax authority assessment. The tax authority issues an assessment including the total tax due on the company. If the company objects to the inspection result, the dispute is transferred to the Internal Committee.
The Company objects the inspection results; the dispute is transferred to the Internal Committee to discuss the disputed points that arose from the inspection. Further to issue a modified assessment based on its opinion.
If the company objects to the inspection result, the dispute is transferred to the Appeal Committee to review the disputed points arising from the Internal Committee. The Appeal Committee's decision is final and binding on the company and the tax department, unless a case is appealed by either of them at the court within 30 days of receiving the decision. Based on the fact that the total taxes due on assessment as per the Appeal Committee are considered final, if they are not paid within the appropriate period there will be penalties for late payment.
If the decision of the Appeal Committee is not satisfactory for either party, the case will be transferred to the court system, which is considered the final stage of the disputes. Normally, the court would appoint an "expert witness" to investigate the case and prepare a report. The court process usually takes a long period of time.
The information provided in this article is for general information purposes only. The information is not intended to be comprehensive or to include advice on which you may rely. You should always consult a suitably qualified professional on any specific matter.
Maastricht University - 5th Global Tax Policy Conference: Tax Policy after BEPS, what can be expected? On 6 September 2019 at the Royal Museums of Arts and History in Brussels, Prof. Dr Hans van den Hurk, chairman of the Annual Global Tax Policy Conference of the Maastricht Centre for Taxation (Maastricht University) with his esteem speakers are addressing the above question.Read more