Tuesday, March 09, 2010

Algeria - Orascom telecom loses appeal against tax demands

[wireless federation] An appeal against back-dated tax claims by Algerian subsidiary of Orascom Telecom, Orascom Telecom Algérie (OTA) has been lost by the company. Though the company is not required to pay the full amount, but it will have to pay a further 20% of the claim pending its next appeal with the Central Commission.

Payment of additional US $110 million has been confirmed by Orascom to proceed with the next stages of its appeal and it has already paid US$120 million last December in order to file an appeal against the US$597 million tax demand. The appeal was for the tax years 2005, 2006 and 2007.

The appeal can be filed by OTA in the State Counsel instead of Commission Central and it will receive the amount only if the appeal is successful. OTA’s administrative appeal in relation to a US$50 million 2004 tax reassessment has also been rejected.

Until the tax dispute is resolved, US$257 million of dividends from the Algerian subsidiary will be frozen for the parent company.

Orascom telecom loses appeal against tax demands in Algerian unit

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