H.A El-Meniawy & Co.

Chartered Accountants & Tax Consultants

Messrs / Representation Office

Of the Union De Banques Arabes Et Francaises (UBAF)
To the kind attention of / Mr. Hamed Hassouna (General Manager)

Income Tax Inspection Report

For the years 2001/2004

In reference to the previous report dated 16/4/2014 in respects of income tax

inspection, kindly be informed that the income tax inspection was finished
for these years and resulted in the reduction of penalties and tax differences
for these years from the amount of LE 945,448.60 to LE 184,289.76 with a
deduction of LE 761,158.84. These differences were due to the following
reasons:

1) The existence of some differences in calculating the tax between the

tax office’ calculation and the amounts paid by the employees during
the period starting from 2002 to 2003. At that time, our office was not
officially assigned to calculate the tax. Thus, each employee was
responsible for the calculation and payment his own tax without
referral to our office.

2) The existence of some payments related to Mr. Hossam Nasser which

were not listed in the payments due to lack of the supporting receipts.
We submitted a request to the accounting department at the Tax Office
of Joint Venture Companies and we were given a certificate proving
that there were several payments paid by cheques and listed in the
payments. Accordingly, the differences and penalties were deducted
except for some payments which were paid in cash & were not
supported by any receipt. Thus, they were not listed in the payments.
H.A El-Meniawy & Co.
Chartered Accountants & Tax Consultants

3) Non existence of the payment receipts related to Mr. Sabry El-

Zawahry for the period from Feb. to May 2003 in addition to the
receipt which was paid by mistake as a development charges tax
instead of income tax “previously referred to in the preceding report”.

As a result, the following differences were found in the due tax

“between the reported tax & the paid tax”:

Year 2001 ----- LE 6462.00

Year 2002 ----- LE 48037.36
Year 2003 ----- LE 18189.66
Year 2004 ----- LE 0.00

4) The existence of differences in tax because the tax office ignored the
exemption of the representation allowance for more than one person
due to the few number of employees. This was resulted in the
following differences:

Year 2001 ----- LE 450.00

Year 2002 ----- LE 862.50
Year 2003 ----- LE 375.00
Year 2004 ----- LE 450.00

5) The existence of a mistaken tax due to the lack of form No.2-insurance

for both years 2003-2004. Thus, the tax office depended on the
printout issued by the social insurance authority. This was resulted in
the differences between us & the tax office. Accordingly the tax was
calculated by mistake as following:

Year 2003 ----- LE 260.75

Year 2004 ----- LE 343.48
H.A El-Meniawy & Co.
Chartered Accountants & Tax Consultants

6) Penalties on the due taxes which were not paid & calculated till the end
of inspection date. These penalties were as following;

Year 2001 ----- LE 9789.93

Year 2002 ----- LE 67012.12
Year 2003 ----- LE 23191.82
Year 2004 ----- LE 0.00

7) Penalties on the taxes paid after the due dates:

Year 2001 ----- LE 441.8

Year 2002 ----- LE 1111.98
Year 2003 ----- LE 0.00
Year 2004 ----- LE 4403.8

Accordingly, the total due taxes & penalties till issuing forms No. (3&4) =
the amount of LE 184,289.76 while penalties are calculated on weekly basis.

Kindly accelerate taking the necessary actions in respects of the due tax
payment so that no other penalties can be calculated.

Best regards,
Hassan Abd El-Megid El-Meniawy
Chartered Accountant
R.C.A 3032
C.B.E 412
Fellowship of E.T.C
Fellowship of E.A.C
Issued on 11/6/2014