Problems relating to Trade and Investment on Egypt

14. Taxation Systems
Issue	Issue details	Requests	Reference

(1) Indefinite Tax Investigation Schedules

- Tax investigation schedules are uncertain. Abruptly the investigation begins and nothing is heard for months without, any indication of how long the investigation lasts. The waiting period could be counted as the period subject to additional penalty tax payment. Enterprises are unable to nail down the profit and loss of their accounts until completion of tax investigation.

- It is requested that the taxation authorities:
-- clarify and shorten investigation schedule, and
-- make the procedure transparent.

(2) Nebulous Taxation System

- Upon taxation investigation, the taxation authority applies its internally prepared "own" rules, sometimes overruling the statutory taxation laws and regulations, at other times, in the absence of express statutory provisions. Denial of tax return results from the taxation authority's nebulous internal rules, without clear explanation of the statutory basis and much against the intent of the investigated party.

- It is requested that GOE unitises the tax legislation and clarifies the contents.

(3) Non Tax Refund Resulting from unpaid Corporate Income Tax

- A firm filing application for tax refund under the Japan-Egypt tax treaty is unable to keep both ends meet for denial of tax refund relative to the tax year with no income tax payment.

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