Annual report

The Board of Directors of the Egyptian Taxation Association are required to submit an annual report stating the activities of the Association during 2004 and the new projects thereof as follows:

First: Establishment of the Association

The Tax Association has been founded by virtue of decree No.3723 of 14 August, 1990 from the Abdeen Social Department. The Decree has been promulgated in the Official Gazette under issue No.189 of 2 September, 1990. The Association is subject to the provisions of Law No.32 of the year 1964 on Private Associations and Institutions. Notarization of the Association has been given effect centrally by virtue of decree No.39 of 24 October, 1996.

The principal purpose of the foundation of the Association is: to continuously promote the science of taxation in Egypt on the bases of legislation, accounting and application for the purpose of achieving the targeted mission of imposing taxes financially, economically and socially by virtue of the following act:

Second: Symposiums and Conferences

The Association has held taxation symposiums for the purpose of discussing the foremost important economic and taxation laws and topics. The following symposiums have been held:

  • A symposium on the effect of income taxes on the performance and growth of small and medium business. The symposium held at the Cairo Conrad Hotel on 3/3/2004 in cooperation with economic development associations under the auspices of the International Private Sector Enterprise center.

    Most important recommendations: For the purpose of achieving the hereinabove mentioned the role of the small businesses in the development of the Egyptian economy, the following is recommended:
    a) Expand promotion for investment in micro industries in Egypt. The media can share in providing the suitable environment for investment in Egypt by organizing symposiums that reveal the importance, viability and types of such projects as well as share in the promotion for the new projects to Egyptians working abroad.
    b) Enhance the process of the exportation of products of the micro industries, facilitate the procedures for exportation and eliminate the contradictions rising from the necessity of obtaining the approval of more than one body for exportation of a commodity in addition to other barriers to exportation.
    c) Facilitate the processes of funding industries in Egypt.
    d) Raise the efficiency of internal and external marketing for products of the small industries.
    e) Develop training programs to prepare technicians needed by the small industries.
  • A symposium on the differences and similarities between the Egyptian taxation legislation and the Egyptian Accounting Standards. The reporter of the symposium was Mr. Hosny Gad, chairman of the Tax Department; the symposium was held at Conrad Hotel Cairo on 8/3/2004.
  • The fourth taxation conference held on September 25 and 26, 2004 at Cairo Conrad Hotel titled The effect of Taxation on Investment in Egypt; The conference was held in cooperation with the Arab Union for Legal Accounting Experts.

Most important recommendations

On the Arab level

  • Provide an independent judicial power practiced by specialized judges who settle disputes quickly and fairly in a manner that inspires confidence to the investor.
  • Transform all dealings with public administrations to electronic dealings for the purpose of raising efficiency, speeding procedures and achieving transparency.
  • Pass fair legislations for the application of the system of value added tax (VAT) in accordance with the fair value principle.
  • Facilitate the conclusion of the double taxation relief agreements (DTRA) between all Arab countries and enforce executive regulations for the implementation thereof as soon as possible.
  • Complete the foundation of the Arab Tax Association for which the foundation contract has been signed by members of more than 10 Arab countries.

On the Egyptian level

  • Lay down a legislative text allowing profits generated from the revaluation of economic authorities possessed in full by the State not be subject to tax when transformed into joint stock companies possessed in full by the State or by the private sector.
  • Lay down a legislative text stipulating the slash of the VAT from half a percent on a weekly basis to 1% on a monthly basis, as such, achieving equality between the laws of sales tax and income tax and the existing stamp duty.
  • Reconsider the penalties imposed on tax evasion in a manner making the sanction relevant to the act in accordance with the principle set by the Supreme Constitutional Court.

Third: Tests
The Association has held written tests for new members in November, 2004 as a prerequisite to the approval thereof as members of the Association. The tests are an implementation of the statute and have been held at the Commerce Club Cairo.
Number of members of the Association

  • The number of members of the Egyptian Tax Association up to 31/12/2004 has reached 5411, of which 4212 were members and 1197 were fellows.
  • The number of members who have joined the Association during 2004 has reached 443, of which 384 were members and 59 were fellows.
  • The number of members who have paid the membership fees up to 2004 was 1500, of which 1230 were members and 270 were fellows; the rest are currently being demanded to pay.

Fourth: Board of Directors
First: The BOD of the Egyptian Taxation Association met on 5 occasions during 2004. During the session of the Board held on 24/11/2004, the following was decided:

  • In accordance with Article 23 of the rules and regulations of the Association stipulating that the General Assembly shall meet for the election of Board members in lieu of such whose membership has lapsed, the following measures were taken:
    a) Announcement of the General Assembly to the Egyptian Taxation Association to meet on 8/5/2005 at 5.00p.m in accordance with the statutes; the relevant registered letters were sent to all members of the Association.
  • The director of the Abdeen Department was notified for the purpose of taking the necessary relevant measures; no objections were received from the Department.

New Office Premises:

  • The Association re-located its office to new premises at 41 Talaat Harb St., floor 6,. The re-location plan has been one of the objectives of the new Board which succeeded to obtain such. The premises were obtained from Misr Insurance Company and were completely republished .
  • A library has been added to the new location comprised of the most important references and publications on taxation in Egypt, Arab countries and the world. The new premises have been connected to the internet for the purpose of keeping the Association in constant connection with other associations. The new premises are also equipped with training center capable to 30 people.

Fifth: Financial Statements:
The financial statements of the Society includes:

  • Total revenue during the period from 1/1/2004 to 31/12/2004 amounted to L.E394544.
  • Total expenses for the stated period amounted to L.E282766.As such, the surplus of revenue is L.E111778.

Fellow colleagues and members of the General Assembly, The aforementioned is an abstract of the activities of the BOD during 2004. We encourage and look forward t your attendance at the General Assembly meeting and to receiving on your feed back on our achievements.

Best of wishes,
Chairman of the Board of Directors
Dr. Ahmed Shawki

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