Egypt’s Tax Authority: Either OCI Pays Tax Dues Or Considered Evasive

Egypt’s Tax Authority will be holding a meeting Sunday with Orascom Construction Industries – OCI (OCIC.CA) so as to put an end for the current dispute over EGP 14 billion tax dues represented in selling its Orascom Building Materials Holding to French Lafarge in 2008.

The OCI- Lafarge deal has violated the law leading to tax fraud.

Mamdouh Omar – Head of Tax Authority, said he will be meeting with OCI representative on Sunday seeking to end the current dispute noting that if the firm refuses to pay the agreed amount of tax dues, it will be considered evasive and necessary procedures shall be taken in this regard.

OCI was indirectly accused by President Mohamed Morsi in an Oct. 6 speech of avoiding tax on the 8.8 billion-euros ($11.5 billion) sale of its cement unit to Lafarge SA (LG) in 2008, two months after listing it on the Cairo bourse. The company said the profit is exempted from tax under Egyptian law.