A New Higher Tax Council is Establi
A New Higher Tax Council is Established: Noble Idea but Difficult Implementation
Presidential Decree No. 358 of 2010 establishing a new Higher Tax Council ("Council") has been issued and published in the Official Journal on December 15th, 2010. This is a further step in a program of tax reform which included the abolition of tax holidays in 2005, the issuance of the Income Tax Law No. 91 of 2005, and of the Real Estate Tax Law No. 196 of 2008.
The Council, according to the new Decree, aims at protecting the rights of tax payers and ensuring that the various tax departments are bound by the laws and regulations pertaining to taxation, and that tax payment in general is conducted within a framework of good faith. It also aims at ensuring better dissemination of tax information. This means that the new Council should be perceived as a way to improve the overall tax environment, and in this manner should be seen as an important and positive addition and a means of improving tax credibility.
And in order to make sure that the Council goes beyond a noble idea, the Decree has provided the Council with specific tools; to review all laws and regulations pertaining to taxation, to review all directives issued by tax authorities, and to study complaints by tax payers.
The Decree finally states that the Council shall have a Board of Directors appointed by the Prime Minister, and shall have a full time executive director, independent financial means and a separate legal personality.
Conclusion
Although the idea of the Council may seem to be difficult to implement as bureaucratic agencies in Egypt are not used to the concept of consumer protection boards, the Decree must however be seen as a very positive one as it provides a new framework and a novel approach about citizens' rights and in that manner needs time and support in order to succeed
Presidential Decree No. 358 of 2010 establishing a new Higher Tax Council ("Council") has been issued and published in the Official Journal on December 15th, 2010. This is a further step in a program of tax reform which included the abolition of tax holidays in 2005, the issuance of the Income Tax Law No. 91 of 2005, and of the Real Estate Tax Law No. 196 of 2008.
The Council, according to the new Decree, aims at protecting the rights of tax payers and ensuring that the various tax departments are bound by the laws and regulations pertaining to taxation, and that tax payment in general is conducted within a framework of good faith. It also aims at ensuring better dissemination of tax information. This means that the new Council should be perceived as a way to improve the overall tax environment, and in this manner should be seen as an important and positive addition and a means of improving tax credibility.
And in order to make sure that the Council goes beyond a noble idea, the Decree has provided the Council with specific tools; to review all laws and regulations pertaining to taxation, to review all directives issued by tax authorities, and to study complaints by tax payers.
The Decree finally states that the Council shall have a Board of Directors appointed by the Prime Minister, and shall have a full time executive director, independent financial means and a separate legal personality.