Egyptian Tax authority collects LE 14 billion through tax risk-assessment system: Official

The Head of the Egyptian Tax Authority (ETA), Rasha Abdel-Aal, announced that the tax risk-assessment system has generated approximately LE 14 billion, noting that the ETA received around 750,000 voluntary disclosures, which contributed to a total tax yield of LE97 billion.

Speaking at a seminar organized by the Journalists Syndicate, Abdel-Aal added that the Tax Authority is undergoing a shift in its operational philosophy and approach to tax-related challenges.

This transition moves the focus beyond mere revenue maximization toward achieving a balance between increasing public treasury resources, safeguarding the interests of the business community, and streamlining its interactions with the tax system, she said.

The tax risk-assessment system stands as a cornerstone of the development and digital transformation plan currently being implemented by the ETA to modernize tax administration and enhance collection efficiency.

An effective system

The system leverages big data analytics and artificial intelligence systems to electronically screen taxpayer files, classifying them based on their level of tax compliance—all without human intervention.

This represents a significant paradigm shift, effectively ending the era of random, comprehensive audits for every single file.

The system operates through network connectivity and data integration, linking the Tax Authority’s own databases—most notably the e-invoicing and e-receipt systems—with those of other government entities, including the Customs Authority, the Commercial Register, banks, and investment authorities.

Through this integration, the system compares the actual transaction volumes of companies and individuals against the data provided in their tax returns, automatically flagging any unexplained gaps or discrepancies that may indicate potential tax evasion or undisclosed business activities.

Based on the findings of this analysis, field inspection and tax audit teams are directed exclusively toward high-risk files.

This has proven highly effective in identifying thousands of instances of non-compliance and ensuring the accurate and prompt collection of state treasury revenues.

Conversely, this mechanism offers a significant advantage to compliant taxpayers by sparing them from burdensome, routine audit procedures and fostering a stable, fair business environment.

These measures coincide with a package of tax facilitations introduced by the Finance Ministry and Tax Authority, aimed at building trust with the business community.

This policy seeks to encourage taxpayers—including those operating in the informal sector—to proactively file their tax returns and voluntarily regularize their tax status in order to benefit from the offered facilitations.

Furthermore, it aims to integrate the informal economy into the state’s formal system, thereby ensuring tax equity and bolstering the resources of the national economy.