Background

Defendants objected to the tax mission's estimations of their net profits and the dispute was referred to the committee of appeals. The committee dismissed the appeal and the defendants filed a case to appeal this decision.

The court upheld the committee's decision.

The defendants appealed and the appeal court upheld the ruling.

The defendants appealed by cassation.

Decision

Before the cassation court, the defendants argued that the ruling had erred in the application of law as the court had established its ruling based on the argument that the committee had followed legal procedure in informing the defendants of the session. However, Article 149 of the Egypt Income Tax Law, Egypt Law No. 157/1981 stipulates that the tax payer should be informed of the session through an employee of the tax mission.

The court held that this argument was valid as the case documents revealed that the tax mission issued its decision without making the required investigations under Article 149 of Egypt Law No. 157/1981.

The court therefore repealed the ruling.