CAIRO, April 11 (Reuters) - The Algerian unit of Orascom Telecom paid $113 million to the Algerian tax authority on Sunday, representing the last of the principal that authorities say Orascom owes in back taxes for 2005-2007, the firm said.
The Cairo-based international operator added that payment of $25 million of penalties had been suspended pending a final administrative court ruling. It has now paid $597 million in principal plus $49 million in penalties.
Orascom, the Arab world's largest mobile operator by subscribers, said it could recover the full amount if its appeal against the tax bill is successful. It has previously said the bill was based on an unfounded and unacceptable allegation that it did not keep proper accounts in 2005-2007, a period in which it says its Djezzy unit was tax exempt.
The Algerian tax regulator also says Djezzy owes $50 million in taxes from 2004, which Orascom disputes.
Orascom has raised $800 million via a rights issue, in part to cover any shortfall from the tax claim.
Algerian sources told Reuters in February that the government wanted Orascom to relinquish its ownership of the country's biggest mobile operator.
Analysts have been surprised at the speed with which Algerian courts have dealt with Orascom's legal challenge so far, rejecting two appeals since making the demand in November and leaving only a last stage in a process that was seen lasting a year.
The firms stock jumped late last week on talk it would sell its Algerian unit, a prized asset that provides its single largest source of revenue.
According to a law passed last year, the Algerian state and state companies will have the right of first refusal if Orascom sells Djezzy.
For a Q+A on the choices available to Orascom in Algeria, click here Keywords: ORASCOM EGYPT/ (Reporting and writing by Yasmine Saleh and Alastair Sharp; yasmine.saleh@thomsonreuters.com +20 2 2578 3290; Editing by Diane Craft; Reuters Messaging: yasmine.saleh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Cairo-based international operator added that payment of $25 million of penalties had been suspended pending a final administrative court ruling. It has now paid $597 million in principal plus $49 million in penalties.
Orascom, the Arab world's largest mobile operator by subscribers, said it could recover the full amount if its appeal against the tax bill is successful. It has previously said the bill was based on an unfounded and unacceptable allegation that it did not keep proper accounts in 2005-2007, a period in which it says its Djezzy unit was tax exempt.
The Algerian tax regulator also says Djezzy owes $50 million in taxes from 2004, which Orascom disputes.
Orascom has raised $800 million via a rights issue, in part to cover any shortfall from the tax claim.
Algerian sources told Reuters in February that the government wanted Orascom to relinquish its ownership of the country's biggest mobile operator.
Analysts have been surprised at the speed with which Algerian courts have dealt with Orascom's legal challenge so far, rejecting two appeals since making the demand in November and leaving only a last stage in a process that was seen lasting a year.
The firms stock jumped late last week on talk it would sell its Algerian unit, a prized asset that provides its single largest source of revenue.
According to a law passed last year, the Algerian state and state companies will have the right of first refusal if Orascom sells Djezzy.
For a Q+A on the choices available to Orascom in Algeria, click here Keywords: ORASCOM EGYPT/ (Reporting and writing by Yasmine Saleh and Alastair Sharp; yasmine.saleh@thomsonreuters.com +20 2 2578 3290; Editing by Diane Craft; Reuters Messaging: yasmine.saleh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.