Test Bank Chapter (1)

Complete the following questions:

1. The E-Invoice shall include:
- Invoice....
- Invoice.....

Answer: number, issuance date.

2. Egypt Ministry of Finance and Egyptian Tax Authority is in the process of

modernizing the solutions used for ....... and ...........
Answer: tax information management processing

3. Principles of integration approach include:

a- …
b- …
c- …
d- …
Answer:
a. Externalized identify
b. Standards based interfaces
c. Asynchronous processing
d. Data protection
True or false: correct the false
1. Tax invoices include manual signature.
Answer: false (electronic signature)
2. E-invoice is defined as an electronic document which proves the industrial
transaction concluded between persons for the sale of goods and services.
Answer: false (commercial transactions)
3. E-invoice document has to meet every requirement and should be signed
electronically.
Answer: false (certain requirements)
4. Head of the Egyptian tax authority said that there will be exceptions for
taxpayers in terms of registering in the electronic bill system.
Answer: false (no exceptions)
5. Minister of Finance said that companies that are required to join the electronic
invoice system in two stages.
Answer: false (all stages)
6. Minister of Finance said that companies that are required to join the electronic
invoice system in all stages must not quickly join the system to avoid being
penalized by the law.
Answer: false (must)
7. Minister of Finance said that companies that are required to join the electronic
invoice system in all stages must join the system quickly to avoid being
penalized by the law.
Answer: true.
8. Financers whose dealings are only with a first customer are also obligated to
register in the electronic billing system.
Answer: false (final consumer)
9. Minister of Finance added that all invoices will be considered in deducting or
refunding VAT according the obligatory decisions issued to implement the
electronic invoice system.
Answer: false (only electronic invoices)
10. The E-Invoice system aims to enforce the digital transformation in the
Egyptian Electronic Tax System.
Answer: true.
11. Tax prayer’s sales Invoice, credit notes and debit notes integrated to E-
Invoice system.
Answer: false (portal)
12. Egypt Ministry of Finance and Egyptian Tax Authority is in the process
of modernizing the solutions used for tax information management only.
Answer: false (management and processing)
 13. One of the important elements of this overall modernization is
implementation of digital processing of the invoices and receipts.
Answer: true.
14. Ministerial Decision No. 188 for 2020 was issued to bind the tax society
to e-invoice portal.
Answer: false (e-invoice system)
15. E-invoice and e-Receipt platform enable the benefit of full digital
invoice and receipt processing.
Answer: true.
16. One of the specific taxpayer benefits expected short term is facilitate
inter-company settlement procedures for VAT.
Answer: true.
17. One of the specific taxpayer benefits expected short term is validate
invoice and receipt items and data for parties after issuing.
Answer: false (before issuing)
18. One of the specific taxpayer benefits expected long-term facilitate CPA
review for preparing financial statement.
Answer: false (short term)
19. One of the specific taxpayer benefits expected short-term is facilitate tax
refund procedure.
Answer: false (long term)
20. One of the specific taxpayer benefits expected long-term increase audit
procedure with the possibility of remote audit.
Answer: false (reduce audit)
21. System integration provides set of APIs defined in this SDK that cannot
be called by taxpayers.
Answer: false (can)
 22. Integration approach defines multiple aspects of the integration approach
that apply to one of the APIs defined in this SSDK.
Answer: false (all of the APIs)
23. Item coding E-invoice has a unified form, design, content that has been
identified and regulated by the laws and regulations of the E Invoice regarding
to business requirements for ETA.
Answer: false (unified form)

Essay questions:

1.Define the E-invoice?

E—invoice is defined as an electronic document which proves the commercial

transactions concluded between persons for the sale of goods and services. Such
document has to meet certain requirements and should be signed electronically.

2. Identify e-invoicing platform?

E-invoicing platform is going to enable digital capturing of invoices circulating in
the country starting with the business to business (B2B) invoices and later
business to consumer (B2C).

3.Explain the Objectives of the E-invoice System? (Important Question)

The E-invoicing system aims to:

1) Enforcing the digital transformation and tax e-system in Egypt.

2) Providing the Tax Authority with appropriate tracking of concluded
transactions.
3) Allowing the verification of the information provided by persons under the e-
invoice.
4) Facilitating and expediting tax procedures, including the calculation and
collection of taxes.
4- What are the Taxpayer Benefits (Short and long Term)? (Important
Question)
*Short term:
1) Validate invoice items and data for parties before issuing.
2) Enhance the company taxation position by classifying it as a Low-Risk
profile company.
3) Facilitate inter-company settlement procedures for VAT.
4) Updates and improves invoices exchanging methods between companies.
5) Facilitate CPA (Certified Public Accountant) review for preparing financial
statement.
6) Help company to make reports and quick accurate analysis for the purpose of
decision making support.
*Long term:
a Reduce the administrative burden, cost of transactions.
b The need to archive paper invoice.
c Reduce audit procedure with the possibility of remote audit.
d Facilitate Tax Refund procedure.
e Facilitate the process of preparing and filing declarations.
f Eliminate the traditional review and reconciliation procedures with
companies.
g Effectively support the merge of Informal Economy, and control
h Increase on tax community, and achieve tax justice.
5.What is the main Content of the E-Invoice shall include? (Important
Question )
The E-Invoice shall include the following information:
1) Invoice number.
2) Invoice issuance date.
3) Taxpayer's name, address and tax registration number.
4) Buyer's name, address and tax registration number (if any).
5) Description of the sold goods or provided service and its price.
6) Total amount of the invoice.
6.Mention the main Requirements of the E-Invoicing system?
1. Obtaining a valid E-signature.
2. Using the unified code of the goods and services as issued by the Tax
Authority.
3. Nominating a contact person who will be responsible for the company's e-
invoice system.
 Test Bank Chapter (2)
Q1: True/ False
1- Tax base refers to financial planning for tax efficiency.
Answer: False (tax planning)

2-Tax planning aims to increase one’s tax liabilities and optimally utilize tax
exemptions, tax rebates, and benefits as much as possible.
Answer: False (reduce)

3-Tax planning enables one to think of their finances and taxes at the end of the
fiscal year, instead of leaving it to the eleventh hour.
Answer: False (at the beginning)

4-Tax planning or analysis is a lawful method to increase tax liabilities over a

calendar year
Answer: False (reduce)

5-Tax planning assists the taxpayers in obtaining industrial security and retirement
savings with the decreased fiscal burden.
Answer: False (commercial security)

6-Tax planning for individuals includes tax avoidance or tax evasion.

Answer: False (does not include)

7- Corporate tax planning aids in decreasing direct and indirect tax liabilities during
deflation
Answer: False (inflation)

8-Tax saving options provide a variety of exclusions and deductions that help to
increase the overall tax burden.
Answer: False (reduce)

9- Deductions that help to reduce the overall tax burden are applied to the total
amount of tax owed
Answer: True
10-Employing unscrupulous methods to avoid paying taxes is allowed and you
could face penalties
Answer: False (prohibited)

11- Tax planning done every four years for specific objectives is called short-range
tax planning.
Answer: False (every year)

12-Short-range planning usually occurs towards the beginning of a fiscal year while
long-range planning occurs in the beginning.
Answer: false (short-range occurs towards the end of the fiscal year)

Multiple choice questions:

1-Minister of finance added that …… invoices will be considered in deducting or

refunding VAT according to the obligatory decisions issued to implement the
electronic invoice system.
a. Electronic
b. Manual
c. All
d. None of the above
Answer: c

2-Integration between Egyptian Tax Authority (ETA) E-invoice system and your
ERP is ….
a. E-invoice integration solution
b. Egyptian Tax Authority
c. Taxpayers ERP system
d. Application programming interface (API)
Answer: a
3-Which of the following will consider Integration between
Egyptian Tax Authority (ETA) E-invoice system and your ERP

a-Tax payer’s sales invoice, credit notes and Debit notes integrated to E-invoice
portal
b-Possibility to integrate with any ERP
c-Multi-companies sport
d-User identify and validation
e- All of the above
Answer: e

4-Taxpayers ERP systems will be integrated through (API) that Microsoft will
implement and prepare the steps of its implementation and make it available to
……
A. ETA
b. API
c. ERP d None of the above
Answer: a (ETA “Egyptian Tax Authority”)

5-…… are in the process of modernizing the solutions used for tax information
management and processing.
A. Egypt Ministry of finance
b. Egyptian Tax Authority
c. Egypt Ministry of finance and Egyptian Tax Authority
d. None of the above
Answer: c

6- ……. will streamline and simplify taxpayer assessment.

a. E-invoicing
b. E-Receipt platform
c. E-invoicing and e-Receipt platform
d. None of the above
Answer: c
7-Which of the following is considered expected benefits of E-invoices and e-
Receipt.
a. Full digital invoice and receipt processing
b. Simplification of declaration submission
c. Improved digital taxpayer experience
d. Encourage informal economy into compliance with formal.
e. All of the above
Answer: e

8- Taxpayers can be in both role of the ……. document and the role of ……
a. Issuers, issuers
b. Issuers, receivers
c. Receivers, receivers
d. None of the above
Answer: b

9- System of integration provides set of APIs defined in this SDK that can be
called by …..
a. Tax receiver
b. Taxpayer
c. Auditor
d. None of the above
Answer: b

10- E-invoicing …….. Is going to enable digital capturing of invoices circulating

in the country starting with the business to business (B2B) invoice and later
business to consumer (B2C).
A. Platform
b. Price
c. Invoice
e. None of the above
Answer: a
11- Instant notification system will allow sharing through:
a. Through the portal
b. SMS
c. E-mail
d. Mobile app
e. All of the above
Answer: e

12- Digital signature E-invoice requires valid and active digital signature from
……
a. The issuer
b. The auditor
c. The taxpayer
d. All of the above
Answer: a

13- Taxpayer’s sales invoices, credit notes and debit notes integrated to …….
a. Ministry of finance
b. E-invoice portal
c. Enterprise source planning system
d. None of the above
Answer: b

Essay Questions

Q1.What Is Meant by Tax Planning?

Tax planning is a legal procedure of diminishing tax liabilities by optimally
utilizing the tax rebates, deductions, and benefits. It assists the taxpayers in properly
planning their annual budget and gaining maximum retirement savings. It has three
types, namely, short and long-range, permissive, and purposive tax planning.
Q2 What are the types of tax planning for individuals? (Important Question )
There are three types:
1) Purposive: It indicates the planning of taxes with a specific aim.
2) Permissive: This type of tax analysis is performed as per the regulations of the
nation’s taxation laws.
3) Long-Range and Short-Range: Here, long and short- range tax planning for
retirement is conceptualized at the beginning and end of a financial year,
respectively.

Q3 why tax planning is important?

• Tax planning is important because it confirms savings on taxes that, in turn,
financially strengthen the taxpayers and also helps them easily pass on their
inheritance to the beneficiaries.
Q4 What is the “Tax Haven”? (Important Question)
Tax Haven is a place or countries where there is a very low or nil rate of income tax
for the business or individuals or foreign investors and also provide an attractive
macroeconomic environment like financial and economic stability as well as
financial secrecy from tax authorities.
 Test Bank Chapter (3)
True or false: correct the false
1) There is one tax avoidance strategies to ensure taxpayers Charitable save on
their income.
False: there are various

2) Tax avoidance increases the tax amount through deductions and tax credits as
applicable to individual taxpayers.
False: reduces

Essay questions:
1.What is the tax Fraud?
Tax fraud is the deliberate use of wrong information in filing tax returns. It is an
illegal act where an entity willfully tries to evade tax liability. Defaulters take
advantage of the tax system and violate laws.

2.Illustrate the differences between Tax Avoidance and Tax some Exemption?
Tax avoidance and tax exemption might sound similar, but they are different in
many aspects.
Both the processes reduce the tax amount, they differ in legal terms.
While tax avoidance is a legal way of reducing the tax to be deducted from the
gross income, tax evasion is an illegal way of skipping tax payments.
What are the types of tax fraud?
1. Claiming Unqualified Credit and Deductions: Many defaulters apply for
deductions or credit that they are not eligible for.
2. Willful Non-filing of Tax Return: If an individual premeditatedly fails to file
tax returns, it is seen as an act of civil tax fraud.
3. Intentional Non-payment of Tax: When taxpayers deliberately evade tax
obligations or hide evidence pertaining to their income, it is seen as an act of
criminal tax fraud.
4. Stating Wrong Numbers or Presenting Fake Documents: The taxpayers who
furnish false documents or provide incorrect statements pertaining to their
income are also considered defaulters.
5. Tax Evasion by Tax Preparer: Tax preparers who aid their clients by
facilitating any or multiple types of offenses mentioned above are also
prosecuted for tax evasion.
What is the tax avoidance?
Tax avoidance is the process of reducing the tax payable. It helps reduce the tax
burden of individuals and businesses, including major corporates. Avoiding taxes is
a legal way of decreasing the tax liabilities of a citizen or business unit in an
economy.
Identify savings, and give an example?
Spending on employer-sponsored savings schemes keeps individuals open to tax
deductions. For example, IRAs help retirement life and let them enjoy significant
tax benefits.