Background

The tax authority estimated the profits of the claimant. The claimant objected to the estimations before the commission of tax appeal. The commission decided to decrease the estimations and said that the tax authority had no right to apply Article 34 of Egypt Law No. 157/1981.

The claimant filed a case before the first instance court. The court ruled that the decision of the commission should be amended and the tax authority should not apply the rules of Article 40 of Egypt Law No. 157/1992 over the case.

The claimant and the tax authority appealed the ruling before the court of appeal. The court dismissed the appeals and upheld the appealed ruling.

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 established its ruling based on the argument that the case file included no evidence that the claimant had violated the tax statement.