Fugitive businessman sentenced to 5 years in jail for VAT evasion

CAIRO – 2 February 2020: Cairo’s Tax Evasion Misdemeanor Court sentenced on Saturday fugitive Egyptian businessman and contactor Mohamed Ali and his partner Howayda Khalil Mahmoud to 5 years in prison and bailed them LE100,000 each for VAT evasion.

Both convicts have been fined LE 100,000 each. The court stated that the anti-government contractor should pay more than LE 41.8 million (US $2,6 million) in value added taxes, with 1.5 percent of the total tax value for every delayed month.

Ali should pay more than LE 6.1 million in sales taxes for the period between 2012 and 2016, with 0.5 percent of the total taxes as a fee for every week of delay.

On November 30, 2019, the Public Prosecution referred fugitive contractor Mohamed Ali to criminal court after Style Company for Interior Design filed a case charging him with fraud and illegal seizure of LE 11 million.

The plea in the lawsuit no. 7135/2019 adds that Style fulfilled its duties indicated in the contracts worth LE 11,765,668, and that Ali promised to pay once the value of the contract with the client is delivered. Later on, the subcontractor figured out that the client had already paid the full amount, and that it was subject to a scheme along with other companies.

Ali fled to Spain where he posted videos criticizing the regime in September, and later moved to the United Kingdom. In January 2020, Ali posted a video in which he announced that he quit politics to return to his business and acting career after his protest call failed to draw any followers among the Egyptian people.

The fugitive businessman has previously called the Egyptian people to protest on the anniversary of the January 25 revolution in 2020. However, his invitation was disregarded as the streets were empty on Saturday.