House planning committee approves harsher penalties for late tax filing
LEGISLATION WATCH- House planning committee approves harsher penalties for late tax filing: The House Planning and Budgeting Committee has approved amendments to the Unified Tax Act that would impose fines of EGP 50k to EGP 2 mn on those who fail to submit their tax returns within 60 days of the deadline, Al Shorouk reports. Repeat offenders who fail to file returns within the 60-day period more than three times could also face jail time ranging between six months and three years. The Unified Tax Act was passed by the House earlier this year and allows for the creation of a single tax platform through which to file income tax, VAT, stamp tax, and real estate tax returns.
Overseas tax engineering is gonna get a little bit more difficult: Another amendment to the legislation clarifies the penalties handed to companies that fail to disclose transactions of more than EGP 8 mn made with a related overseas entity. Under the proposals, companies will:
- Pay a fine equivalent to 1% of the transaction for failing to disclose the transaction in the tax return
- Pay a 3% fine for failing to disclose local transactions
- Pay a 3% fine for failing to disclose overseas transactions
- Pay a 2% fine for failing to report on its overseas activities on a country-by-country basis.