CAIRO – Egypt hopes to lure back investors into the country by settling the overflowing backlog of tax disputes.
On August 30th the parliament of Egypt approved new legislation aimed at easing the process of settling tax disputes, in an effort to attract foreign investors back into the country.
Currently, there are approximately 6 000 tax disputes awaiting evaluation by the national court system, which are cumulatively estimated to be worth as much as EGP 47 billion.
In addition. approximately another 150 civic disputes are awaiting judgment.
Under the new system court proceedings may be placed on hold for at least three months upon request to tax authorities, at which time the case will be examined and resolved by a committee of tax experts who do not have a connection to the tax authorities.
The new law is a temporary measure which will expire in one year.
It is anticipated that by enacting the new tax settlement process, the backlog of unresolved tax disputes can be diminished, thereby restoring confidence in the national tax system among international investors.
International confidence in the national economy has diminished since the uprising in 2011, with foreign reserves falling from UDS 36 billion to USD 15.536 billion in July.
Photo By: Sebastian Horndasch