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Thursday, 5 August 2021

The Tax Authority stick

The Tax Authority referred 10 more companies to the prosecution this week due to their failure to comply with the authority’s e-invoicing system, Tax Authority head Reda Abdelkader said in a statement (pdf) today.

This brings the total number of non-compliant companies to 53 across all three registration phases, he adds. The first two phases were launched last November and February, respectively, with a total of 481 companies participating in them. During those phases, 23 companies were non-compliant. In the third phase, which kicked off mid-May and focused on the remaining companies in the Large Taxpayer Center, 30 companies did not register, according to the statement.

All public and private sector companies are expected to register in the e-invoicing system by April 2023, Finance Minister Mohamed Maait had previously said.

What is the e-invoicing system? The government is attempting to develop a unified digital tax payment system, which will enable businesses to file and pay income tax, stamp tax, VAT and real estate tax through a single online platform. The e-invoicing system, a crucial part of that move, is seen as a key part of the ministry’s efforts to curb tax evasion.

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