Tax districts throughout the country enjoyed an unprecedented flow of taxpayers requesting to end disputes and benefit from privileges granted by the tax authority.  June 10th has been the date set by...

Tax districts throughout the country enjoyed an unprecedented flow of taxpayers requesting to end disputes and benefit from privileges granted by the tax authority.  June 10th has been the date set by the tax authority to end disputes peacefully and outside of court in return for benefits such as tax cuts. Minister of Finance Dr. Ghali has issued directives to streamline processes and for auditing committees to begin their work expeditiously.  In line with government promises to encourage taxpayers’ confidence through self assessment, Dr. Ghali called on tax employees to avoid intervention with figures entered by the taxpayers in tax returns. Head of the Tax Authority Mahmoud Mohamed Aly  said the tax districts have witnessed an increased activity on June 10th particularly among professionals who have been given a five year grace period and will be accounted for as of 2005. Saeed Hendawy of the model center for top tier taxpayers said that those who have not submitted their documents on June 10th will be considered a tax evaders and will be punishable by law up to a five year jail sentence and/or payment of a fine equivalent  to the tax amount. Evasion will not be dropped through  a period of prescription but the new taxation idea is to turn over a new leaf based on mutual trust.  As for disputes in court, the tax department will be ready to end disputes provided the taxpayer pays up a percentage of the due tax amount  determined by law at 10% for  amounts of up to  100,000 pounds, 25% on half a million pounds  and 40% for larger amounts. (source: Al-Akhbar)