Reducing a VAT Assessment to EGP 700,000 During Liquidation

The challenge

A company in liquidation faced a VAT assessment of approximately EGP 5 million, mainly related to its closing inventory. With no internal accounting team, incomplete records and limited historical financial data, the company had little documentation to support its position.

Our approach

SFA reviewed the available records and identified tax credits and customs payments that the company had not accounted for in its tax position. We gathered evidence from several sources, checked it against the records and prepared a written case for the Egyptian Tax Authority.

The authority rejected our initial submission. We continued to meet with its representatives to explain the evidence and how the credits and payments affected the assessment.

The result

The Egyptian Tax Authority recognised the company’s tax entitlements and reduced the VAT assessment to EGP 700,000. For the company, that meant a reduction of approximately EGP 4.3 million during liquidation.