Egypt Tax Authority Chief Says OCI Negotiations Reached Deadlock

The negotiations between the Egyptian Tax Authority and Orascom Construction Industries (OCIC.CA) over the EGP 4.7 billion tax dues related to the sale of Orascom Building Materials Holding to Lafarge SA (LG) in 2007 have failed, the Chief announced on Monday.

The Egyptian Tax Authority Chief Mamdouh Omar further said over the six months of negotiations, the authority was trying to find reasonable compromise solutions but OCI refused to pay EGP 14 billion tax dues, despite achieving capital gains of EGP 68 billion from the Lafarge deal.

The Tax Authority is seriously willing to settle all the existing disputes over tax dues, he added.

The chief stated that OCI has sold its entire stake in Orascom Building Materials Holding to Lafarge, therefore such a deal are subject to tax.

Egypt’s treasury authorities have the right to collect EGP 14 billion tax dues and the OCI would be also charged for the returns and the late payment penalty as well.