Egypt’s Tax Authority, OCI To Hold New Meeting By March 17

The negotiations between the Egyptian Tax Authority (ETA) and Orascom Construction Industries (OCIC.CA) will be resumed next Sunday March 17, seeking to reach a reasonable compromise and end the existing disputes over tax evasion claims amid the sale of Oracom Building Materials to French Lafarge in 2007.

During the last two meetings with the ETA, OCI has offered pay EGP 6 billion.

Senior source from ETA told Amwal Al Ghad During the last two meetings of March 10 and 12, OCI has offered to pay EGP 6 billion to the authority to reach reconciliation for the EGP 14 billion tax evasion issue.

The source further explained that OCI has requested to transfer its tax file from ETA’s Anti-Tax Evasion Department to the Appeals Committee so as to look into the rest of the tax dues of EGP 8 billion. The source attributed OCI’s request to the fact that the Anti-Tax Evasion Department is likely to double the tax dues from EGP 8 billion to EGP 28 billion.

On the other hand, first-hand sources from OCI negated that the firm has offered to pay EGP 6 billion to reach reconciliation for the EGP 14 billion tax evasion issue.

The sources reiterated that the company continues talks with the Tax Authority and that another meeting will be held next Sunday in this regard, Mubasher reported.

“Any talks about figures for settlement are incorrect currently,” the sources noted.