OCI’s Egypt Unit appeals Tax Rulling, Sawiris says

Egypt’s Orascom Construction Industries S.A.E. (OCI) (OCIC) has appealed a preliminary court ruling in a case filed by the Egyptian tax authority, its parent Dutch-based company said.

The appeal has rendered the ruling “unenforceable,” Netherlands-based OCI NV said in an e-mailed statement on Tuesday. The company didn’t disclose the court decision.

The lawsuit challenged OCI’s decision not to pay the second installment of a tax settlement agreed on with the government of Islamist President Mohamed Morsi, who was deposed in July last year. The lawsuit was filed before the public prosecutor acquitted the company of any wrongdoing, OCI NV said.

“Based on the prosecutor general’s decision, the company is continuing to challenge the tax claim,” OCI said. A court hearing is scheduled for July 7, the company added.

Egyptian billionaire Nassef Sawiris, chief executive officer of OCI NV, said by phone that the company is also “engaging with the government to further explain its case.” He declined to comment on details of the ruling.

The lawsuit won’t deter him from exploring investment opportunities in Egypt after completing a 400 million-pound ($56 million) investment in an Egyptian health care provider, Sawiris said.

Source: Bloomberg