The Administrative Judiciary Court in the Council of State in Abbasiya has referred the lawsuit filed by actor Adel Imam, which seeks to halt the decision of the Tax Authority's Appeals Committee regarding the series "Afaret Adli Alam," "Awalem Khafeya," and "Valentino," to the 28th Tax Division due to the amount involved, estimated at 6.4 million Egyptian pounds.
Adel Imam's defense attorney indicated that "the actor participated in the series Afaret Adli Alam, which was filmed in the free zone of the Media Production City, noting that this work is exempt from value-added tax. He also participated in the series Awalem Khafeya and the series Valentino in 2019, both of which were executed within the Media Production City in the free zone and are not subject to value-added tax."
The lawsuit further stated that value-added tax is calculated on artistic works that do not fall under the value-added tax because these works took place within the Media Production City, which is exempt from the tax according to law. The tax authority did not conduct a site visit during the inspection to verify this but relied solely on desk examination without providing any documents to support its claims.