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Orascom Telecom takes Algerian tax office to court
Egypt’s Orascom Telecom will take Algeria’s tax office to court in an attempt to avoid paying DZD43.9bn (US$600m) in back taxes.
On April 1, the Egyptian operator announced that it would take Algeria’s Direction des Grandes Entreprises through the…
Egypt’s Orascom Telecom will take Algeria’s tax office to court in an attempt to avoid paying DZD43.9bn (US$600m) in back taxes.
On April 1, the Egyptian operator announced that it would take Algeria’s Direction des Grandes Entreprises through the country’s court system after the tax office rejected Orascom Telecom’s appeal against the imposition of taxes.
The Direction des Grandes Entreprises levied the taxes on Orascom on November 16 last year alleging that the Egyptian company’s local subsidiary Orascom Telecom Algérie, which trades as Djezzy, failed to keep accurate accounts for the 2005, 2006 and 2007 tax years.
On December 24, Orascom paid the tax office US$120m or 20% of the claim so that it could use the tax office’s internal appeal procedures. Orascom has now exhausted the internal appeal process and can only avoid paying the back taxes by winning a favourable judgment from an Algerian court.
Djezzy produces more revenue than any other Orascom business. In 2009, its revenues of US$1.9bn accounted for 36% of total group revenues.
