Orascom Telecom gets final $230 million tax (Egypt)

Egyptian mobile operator Orascom Telecom Holding has stated that Algerian authorities had given its local unit Djezzy a final $230 million tax request for the years 2008 and 2009.

According to the company, it had already paid taxes for those years and would take legal steps to challenge the completely unfounded reassessment.

Djezzy, Orascom’s single biggest revenue earner, has been at the centre of a long-running dispute with Algiers since it was hit with over $600 million in previous back-tax claims and penalties last year.

Uncertainty over the fate of the unit, which Algeria has stated it wants to nationalize, has complicated a $6.6 billion deal to sell a majority stake in Orascom and other assets to Russian operator VimpelCom.

According to earlier statements by Orascom, it had received preliminary notification of the $230 million reassessment, but that it was not final.

As per Orascom, without prejudice to their rights under the investment agreement, applicable bilateral investment treaty and applicable laws, OTH (Orascom Telecom Holding) and OTA (Orascom Telecom Algeria) intend to take all necessary legal steps to challenge this completely unfounded reassessment.