Egypt's FEC, TRAIN partner to support food exporters    Spot Gold, futures slips on Thursday, July 17th    Egypt's EHA, Huawei discuss enhanced digital health    Egypt expresses condolences to Iraq over fire tragedy    Egypt, Oman discuss environmental cooperation    Egypt's Environment Minister attends AMCEN conference in Nairobi    At London 'Egypt Day', Finance Minister outlines pro-investment policies    Sukari Gold Mine showcases successful public–private partnership: Minister of Petroleum    Egypt's FRA chief vows to reform business environment to boost investor confidence    Egyptian, Belarusian officials discuss drug registration, market access    Syria says it will defend its territory after Israeli strikes in Suwayda    Pakistan names Qatari royal as brand ambassador after 'Killer Mountain' climb    Health Ministry denies claims of meningitis-related deaths among siblings    Sri Lanka's expat remittances up in June '25    EU–US trade talks enter 'decisive phase', German politician says    Egypt's Health Min. discusses drug localisation with Sandoz    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Orascom appeals Algerian tax claim
Published in Daily News Egypt on 28 - 12 - 2009

CAIRO: Orascom Telecom (OT) has filed an appeal with Algerian tax authorities for the $596 million allegedly owed by its Algerian subsidiary, Orascom Telecom Algeria or "Djezzy .
Algeria claims that during the 2005-2007 period, the mobile operator failed to keep correct tax records and must now pay back taxes; OT denies the claim, stating that it was exempt from taxes during the period in question.
As of September, Djezzy had a market share of 63.7 percent, or the equivalent of 17.4 million subscribers, according to the Orascom Telecom website. Reuters quoted revenues falling 7 percent to $1.4 billion in the past nine months.
Orascom Telecom's share price, as traded on the Egyptian Stock Exchange, is down almost 6 percent, from LE 25.02 per share to LE 23.57. Although falling now in the face of uncertainty at the fate of the telecom giant, shares in Orascom Telecom Holding SAE had reached record highs at its announcement in mid-December to raise $800 million in a rights offer. Although officially intended to "strengthen its balance sheet , the funds will cover the nearly $600 million dept to Algeria should the appeal be denied.
The 21 percent surge, pushing stock prices to LE 32.58, was the largest intra-day gain since October 2003, as recorded by Bloomberg. Bloomberg reported that "the issue could total LE 5 billion ($914 million), with each share holder offered new shares for every existing stock at LE 1 each, equal to the nominal value of an ordinary share in the company.
Previously, the Algerian tax regulator had laid claim to $50 million in taxes owed by Djezzy from 2004, which OT is also contending.
Speculations have arisen over the timing of the current round of allegations, coming closely on the heels of the high-tension football match between Egypt and Algeria, when the countries competed to qualify for the 2010 World Cup.
Rasha Ezz Eldin Mohamed, a public relations representative for OT, emphatically stated that the tax claim bears no relation to nationalist hostilities. She stated that the fact that changes in Algerian tax laws happened to coincide with the timing of the match is purely coincidental.
"The tax claim has no relation to the match, she said in exasperation.
In addition, OT is currently locked in another high profile legal dispute with France Telecom (FT) over the share price of Egyptian mobile operator Mobinil, of which FT is attempting to gain majority shares.
Responding to questions about Orascom Telecom's three-way dispute between FT and now the Egyptian Financial Services Authority (EFSA), Mohamed said that OT has, "submitted an appeal to the EFSA . they will meet as a committee on Thursday Dec. 31 to discuss Orascom's position.
OT had appealed the decision by the EFSA to authorize FT's offer to purchase majority shares of OT at LE 245 ($45.40) per share.
Orascom Telecom, the largest mobile phone operator in the Middle East and Egypt's first multinational company, has had a larger than usual share of the recent spotlight; in both the dispute with France Telecom and that with Algeria's tax authority, the company has come to symbolize Egypt and Egyptian interests, at least in popular opinion.
After Algeria secured the World Cup slot, animosity between the two countries has led to vandalism and intimidation of both Egypt's Algerian and Algeria's Egyptian communities, invoking statements by public figures, including President Hosni Mubarak's son, Alaa, who condemned the North African country.
Orascom Telecom currently operates mobile services in seven countries across the Middle East and Asia and in Europe under its parent company Weather Investments, which holds Wind Telecommunications.


Clic here to read the story from its source.