Orascom Telecom Algérie, the Algerian subsidiary of Egypt’s Orascom Telecom, has paid US$113m to tax authorities so that it can take the authorities’ claim for US$597m to the country’s appeal court.
The operator’s latest payment to the tax authorities…
Orascom Telecom Algérie, the Algerian subsidiary of Egypt’s Orascom Telecom, has paid US$113m to tax authorities so that it can take the authorities’ claim for US$597m to the country’s appeal court.
The operator’s latest payment to the tax authorities takes its total spending on back taxes to US$333m. On 24 December, the company paid US$120m, or 20% of the tax office’s claim for back taxes, so that it could appeal through the office’s internal procedures.
Orascom Telecom has fought a legal battle against Algeria’s Direction des Grandes Entreprises since 16 November when the tax office imposed a US$600m bill for back taxes on the company’s Algerian subsidiary.
The Direction des Grandes Entreprises said that Orascom Telecom Algérie, which trades as Djezzy, understated its revenues in the 2005, 2006 and 2007 tax years. The tax office said that Djezzy reported revenues of US$4.42bn over the three years, but it actually generated revenues of US$5.25bn over that time meaning that it underreported its revenues by US$830m.
The Direction des Grandes Entreprises must repay the US$333m if Djezzy wins its appeal in Algeria’s Administrative Court. The court has yet to set a date for its judgment in this case.
Djezzy generated revenues of US$1.9bn in 2009, which accounted for 36% of Orascom Telecom’s total revenues. Djezzy is the largest business in the group
