What are the cases of tax evasion?
Law specifies the cases of tax evasion as follows:
- Submitting false or incorrect papers or documents to survey and estimation committee or appeal committee, Revealing incorrect data when attending for discussion before these committees indenting to influence their decisions.
- Submitting false documents with intent to wrongfully benefit from the tax exemption.
- Refusing to declare the termination of tax exemption reason.
- Submitting incorrect documents that may unrightfully lead to de-taxation decision.
- a criminal proceeding should not be initiated on the previous crimes except on a written request by the Minister or a delegate.
What is the penalty of tax evasion?
Each taxpayer who breaches the rules of this law, intending to evade paying the due tax is to pay L.E. 1000- 5000 fine in addition to compensation equal to the unpaid tax.
What about the taxpayer who is late to pay on time?
The legislator has decided a fine for any delay of tax payment on the basis of credit price and the discount announced by the central bank, in addition to 2% of the amount of delayed tax. In case of more postponement in tax payment, legal procedures- stated by the law of administrative seizure issued according to law no. 308 in 1955 – are to be applied on the rent value, the possessions of the debtors and on the building itself.
Will there be delay fines for the years the taxpayer did not pay the tax in case the taxpayer is informed of the tax after survey and estimation at a date later to that of tax maturity?
In case of the delay in levying the tax, it is paid in installments over periods equal to those of delay. No delay fine is to be levied in this case. .
What is the penalty of not submitting tax declaration?
Taxpayer is to pay a fine ranging from L.E. 200 to L.E. 2000 in case of not submitting the declaration or submitting incorrect data.
Is there a possibility for composition with the authority?
Yes, there is possibility to compound for the tax as the minister of finance, or his authorized representative, is authorized by law to reconcile in the stated penal actions of not submitting tax declarations or tax evasion, even if the case has been settled by a final verdict. To reconcile, the tax payer is to pay the tax and the fine according to the credit price and the discount announced by the central bank on 1st of January that proceeds that date, in addition to compensation equivalent to the sum of the unpaid tax.
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