Egypt: Central Bank of Egypt defends bank accounts secrecy
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Egypt: Central Bank of Egypt defends bank accounts secrecy

Sponsored by

Eurofast Egypt
AdobeStock_79419266_Egypt

The head of Egypt's tax authority (ETA) Emad Sami said on August 26 2018 that an amendment to the Income Tax Act had been drafted to allow the finance minister to access corporate bank accounts to help combat tax evasion.

Central bank (CBE) governor Tariq Amer responded strongly to the comments later the same day, saying that the CBE would not accept, under any circumstances, allowing the finance ministry to access bank accounts belonging to corporations or individuals, adding that the CBE will protect the confidentiality of customer bank accounts.

Sami explained in a statement to Reuters that the amendment does not contradict the law governing the CBE or current judicial procedures. He stressed that the goal of this proposal was to reduce tax evasion and that not all accounts would be reviewed, but only those that provide unrealistic data. He added that tax inspectors would be allowed to review bank accounts strictly with the approval of the finance minister.

Responding to the storm of criticism from leaders of the banking sector, Sami stressed in an official statement that the ETA respects the law on bank account confidentiality, and that the confidentiality of bank accounts is guaranteed for investors.

According to Ruqaya Riad, legal adviser to the Federation of Egyptian Banks (FEB), the possibility of implementing this amendment has been ruled out, due to the negative impact that it would have on the banking sector and the wider economy.

Egypt is seeking to grow its tax revenues by 4 percentage points of GDP (up from 14% currently). A comprehensive amendment to the full tax law is expected next year, including stricter penalties for tax evasion.

more across site & bottom lb ros

More from across our site

The US is capitalising on a fertile deals market to take centre stage in tax talent recruitment, according to insights from ITR+’s Talent Tracker
The EU’s CBAM is a considerable compliance task for any in-scope companies. As payments loom for many businesses from 2026, tax departments will need to step up and take the lead
The firm also pledged to boost its commitment to AI and reinventing clients’ business models
High-earning businesses place most value on the depth of the external legal teams advising them, according to a survey of nearly 29,000 in-house counsel
Pillar two is bound to create a compliance challenge for clients, but the desirability of tax professionals has never been higher, the ITR forum heard
Laura Hinton would have been the first-ever woman in that position
The former US Treasury official calls time on his government stint; in other news, the G-24 maintains pressure over international tax policy
Proposed regulations on corporate excise tax pose challenges on different fronts, experts tell ITR
The finalists for the 13th annual awards have been revealed
Mazars needs to do all it can to capitalise on TP as a growth area, ex-Deloitte TP director Jeremy Brown has told ITR
Gift this article