A member of the Thabet family told Reuters the two men were released from a police station and returned home, but said the family had no other information about why they were freed. Reuters
A member of the Thabet family told Reuters the two men were released from a police station and returned home, but said the family had no other information about why they were freed. Reuters
A member of the Thabet family told Reuters the two men were released from a police station and returned home, but said the family had no other information about why they were freed. Reuters
A member of the Thabet family told Reuters the two men were released from a police station and returned home, but said the family had no other information about why they were freed. Reuters

MENA

Egypt

Egypt releases Juhayna CEO and son after two-year detention

The pair were accused of supporting and belonging to a terrorist group

The National

January 22, 2023

  • English
  • Arabic

The founder and former chief executive of Juhayna Food Industries and his son were released from prison in Egypt on Saturday.

Safwan and Seifeldin Thabet spent about two years in detention for allegedly supporting a terrorist group in a case that shook the business community as well as Egyptian and foreign investors.

Juhayna, a listed company, is the country's largest dairy products and juices producer.

After security and prison sources as well as a family member told Reuters about the men's release, photos posted on social media showed them joyfully embracing relatives after returning home.

The pair were detained for allegedly belonging to and financing an unidentified terrorist group believed to be the outlawed Muslim Brotherhood, according to state media.

The Thabet family have denied any wrongdoing.

The two men were never convicted.

There was no immediate official statement from the authorities about the release.

A member of the Thabet family told Reuters the two men were released from a police station and returned home, but said the family had no other information about why they were freed.

A prison source told Reuters that the case against them had not been closed.

Safwan Thabet, Juhayna's founder and former chief executive, was detained in December 2020. His son took over before he too was detained in February 2021.

The family had pleaded for their release partly due to the illness of Safwan Thabet’s wife, who died during his detention.

UAE currency
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: January 22, 2023, 6:23 AM
Egypt