CAIRO: The tax campaign that has been airing intensively on television during the holy month of Ramadan is expected to contribute to another successful year for tax returns. "Your interest first, is the slogan of a campaign that is clearly aimed at instilling a relationship of trust between the taxpayer and the tax authority as it seeks to implement the new income tax law, issued in 2004 and ratified by the People's Assembly in 2005. This year, Egypt's tax reform resulted in an increase in the overall income tax revenue, both that of corporate and personal income, from seven percent of GDP to nine percent in just one year of enforcing the new tax law. Egypt has collected LE 108 billion in taxes that have been used to enhance public services, such as schools, hospitals, roads and sewage disposal. "There are still more than 7,000 tax evaders, but at least a channel of communication is open between the public and taxpayers, thanks to the tax campaign, Minister of Finance Youssef Boutros Ghali said Tuesday on Al-Beit Beitak television program, which airs on terrestrial Channel 1. Three million people submitted their tax return documents this year. "Don't rob me I won't rob you, I won't run after you. But if I have proof that there is a chance or doubt you weren't honest on your documents, I will send them to the public prosecutor to investigate the issue, Ghali said. "If you feel you forgot any information, you can modify your tax documents, but if the public prosecutor finds you guilty, it will be too late, Ghali said. The press published the names of 18 actors, including director Wahid Hamed, actor Ahmed Helmy and his wife actress Mona Zaki who were reported to the public prosecutor on charges of discrepancy in numbers. These actors will be investigated and if the Ministry of Finance was mistaken, "we will apologize to the actors for any inconvenience, Ghali said in the interview. He denied that other actors will be implicated with the same charges. For more than a year now, the government has been preparing the public for what has been widely hailed as a new era in tax collection. Transparency, confidence and flexibility will, it says, be the basis of the new tax system. An advertising campaign, featuring the owner of a fabric shop - starring comedian Mohamed Shoman - was launched to show the public just how simple it is deal with the Income Tax Authority, and how beneficial it is to file your taxes on time. In 2004, tax evasion was the norm and a mutual distrust between taxpayers and tax authorities was rampant. There were also 8.2 million people employed in the informal sector, and Egypt charged tax rates as high as 32-40 percent on corporate income - more than twice the 15 percent in Jordan and Lebanon. It was the second worst in the region with regards to ease of paying taxes. The scene changed radically in 2005 when the new tax law was introduced: tax exemptions were eliminated, tax rates reduced and rules clarified. Also, the taxation administration became more taxpayer-friendly. As Ghali stated, "The point of the new law is to say what you want: Whatever claim you make, we believe you, no questions asked. But you will be held criminally responsible and accountable for your claims. Under the new law, only a random sample of returns will be scrutinized in full. "This goes in line with the spirit of the new law, which is based on mutual trust between the authority and taxpayers, said Ghali during a meeting with heads of departments at the Tax Authority.
