- 14 - Egyptian income tax." By this, Esso meant that EGPC should deduct from EGPC's taxable income taxes paid on Esso's behalf and royalties paid. It was also suggested to EGPC, although not pursued, that its profits would increase if royalty expenses were credited against tax. In subsequent meetings with Esso negotiators, EGPC indicated uncertainty about whether the ETD would permit EGPC, in computing its taxable income, to deduct royalties and the taxes paid on behalf of Esso pursuant to the proposed production sharing agreement. The tax provisions were important to reaching a final Esso agreement. Following a meeting among Mefferd, Kruger, and Agnew for Esso, and I. Radwan, Mansour, and Eshmawi for EGPC, the following Article III(f)(6) was added, at EGPC's request, to the production sharing agreement: In calculating its A.R.E. Income Taxes, EGPC shall be entitled to deduct all royalties paid by EGPC to the A.R.E. Government and the A.R.E. Taxes of ESSO paid by EGPC on ESSO's behalf. Esso and EGPC initialed an agreement in English on May 19, 1973. The agreement was not binding on either party until a law authorizing the Minister of Petroleum to enter into the agreement was issued and published in the Egyptian Official Gazette. Between May and early August 1973, Esso's Mefferd and Nabih Doss, a lawyer for an Esso marketing affiliate in Egypt, worked with EGPC's Mansour and Mongui El Rakshy, general counsel of GeneralPage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011