Orascom pays US$113 million of outstanding taxes in Algeria

Orascom Telecom Holding (OTH) confirmed its Algerian subsidiary Orascom Telecom Algerie (OTA), operating as Djezzy, has paid US$113 million to the Algerian tax authority. The figure represents the remaining balance of the principal amount of the authority’s tax reassessment claim for the years 2005-2007, equivalent to US$597 million, excluding penalties which amount to US$74 million.

Algerian tax authorities ordered the outstanding payments in November 2009 after an audit found Djezzy had earned US$5.25 billion, US$830,000 more than it had declared for the 2005-2007 period.

OTA had previously paid US$49 million from the total penalties of US$74 million. Payment of the remaining US$25 million has been suspended until final ruling from the Administrative Court. All monies paid will be recoverable if OTA’s case against the tax authority is successful.