Background

The tax authority estimated the net profits of a merchant and they objected to the estimate. The case was then referred to the commission of tax appeal which decided to decrease the estimate.

The merchant filed a case in order to appeal this decision.

The court dismissed the case.

The merchant appealed the ruling before the court of appeal. The court dismissed the appealed ruling and the decision made by the commission of tax appeal.

Decision

The tax authority appealed the ruling before the court of cassation and said in its grounds of appeal that the ruling had erred in the application of law because the court had concluded that the merchant should be exempt from paying the tax based on the argument that the term ‘properties' mentioned in Article 32 of Egypt Law No. 14/1939 does not include planted land though this term should include all kinds of properties without specification.