OCI wins tax dispute

The Egyptian Tax Authority’s (ETA) independent appeals committee ruled in favor of OCI N.V.’s subsidiary — Orascom Construction Industries (OCI S.A.E.) — in a tax dispute dating back to 2012, the company said in a report on Tuesday.

In October 2012, former President Mohamed Morsi accused several companies of evading taxes in a public address. OCI S.A.E. received a tax evasion claim related to the sale of cement assets to Lafarge SA in 2007.

Last July, OCI N.V.’s CEO Nassef Sawiris was sentenced in absentia to three years in prison and a LE50 million fine on charges related to the case.

OCI said the claim was unsubstantiated and that it was filed “despite there being no official investigation to support the accusations.”

In previous statements, Sawiris said he believed the case was politically motivated under the Muslim Brotherhood-led government.

Following Morsi’s ouster, the general prosecutor launched an investigation into the matter and exonerated OCI last February, prompting an appeal.

ETA Head Mostafa Abdel Kader said in April that the authority had not dropped its case against OCI, as the company failed to honor its agreement with the ETA to pay LE7 billion tax arrears on 10 installments between 2013 and 2017.

“We are pleased that this dispute has now been resolved. This is not only a victory for the company and all its stakeholders, but also for the rule of law and the general investment climate in Egypt,” Sawiris said.

“The outlook for Egypt is very promising, and we continue to be committed to channeling resources towards growth and new investments in the country,” he added.

OCI N.V. is a global producer of natural gas-based fertilizers & industrial chemicals and an engineering & construction contractor based in the Netherlands.