Egypt’s FinMin closes legal loophole in calculating late income tax penalties

LEGISLATION WATCH- FinMin closes legal loophole in calculating late income tax penalties: The Finance Ministry has added a clause to the Income Tax Act’s executive regulations to clearly specify a time period against which late tax payment fees are calculated, according to a document (pdf) seen by Enterprise. The clause also ensures the accumulation of penalty fees does not get put on hold when the fees are subject to taxpayer appeals. The time period for the late fees — which are calculated by applying the central bank’s discount rate plus a 2% premium — was not previously specified in the regulations. The amendment closes a loophole that has allowed some 130k taxpayers to file appeals, a source from the Tax Authority told us.