OCI Reportedly Defaults in Paying EGP900mn Tax Arrears

Orascom Construction Industries (OCI), which is owned by Egyptian business tycoon Nassef Sawiris, has delayed in paying the second installment of tax claims, amounting to EGP 900 million, to Egyptian Tax Authority (ETA) under the tax evasion settlement, according to an official in the country’s Ministry of Finance spoke on condition of anonymity to Almasry Alyoum Newspaper .

Almasry Alyoum couldn’t reach  the company till the Newspaper was printed .

The Source elaborated that the second installment should be paid on December 29, 2013 as pursuant to the tax settlement, however the National Bank of Egypt (NBE) notified the Egyptian Tax Authority that the cheque issued from OCI couldn’t be cashed and it will be back to the ETA .

OCI’s tax claims resulted from the sale deal for its cement unit to France’s Lafarge. The company agreed with the government to pay the ETA ten installments during 2013 – 2017 totaling EGP 7.1 billion less EGP 182 million in existing tax credits to end a dispute regarding tax claims for the years 2007 to 2010.