An official report prepared by the Tax Authority accused the government of obstructing the establishment of the Supreme Tax Council, of violating the Constitution and the principles of the High Constitutional Court, and of not implementing income tax Law 91/2005. Through these failures, the government is violating the rights of taxpayers, the report argued.
A number of consequences have resulted from the failure to establish the Supreme Tax Council, said the report, which was compiled by a high-level official in the Tax Authority and reviewed by current and past directors. It claimed that the absence of such a council gives the Executive Branch and the Ministry of Finance a free hand to issue tax laws and other decisions without the participation and supervision that a council would provide.
The annual regulatory report was not submitted to President Mubarak, the People’s Assembly or the Prime Minister this year, the report confirmed. This annual report highlights the deficiencies in tax legislation and instances of corruption in the tax administration.
In addition, the failure to form a tax council has delayed the publication of a taxpayer bill of rights and a review of the regulations governing tax affairs, said the report. Such regulations must be amended with the cooperation of the government and relevant administrative apparatuses within the government before the amendments can be presented to the People’s Assembly for ratification.
The lack of this governing body has also led to conflicts between tax authorities as well as to an increase in the abuse of power.
There are approximately 25 million taxpayers in Egypt, representing nearly a third of the population. Of these taxpayers, 3.5 million are in medical or legal careers, 6 million are government employees subject to income taxes and 14.5 million are employees within the public and private sectors, the report said.
Translated from the Arabic Edition.
