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(1) the amount of such tax is used (directly
or indirectly) by the country imposing such tax to
provide a subsidy by any means to the taxpayer, a
related person (within the meaning of section
482), or any party to the transaction or to a
related transaction, and
(2) such subsidy is determined (directly or
indirectly) by reference to the amount of such
tax, or the base used to compute the amount of
such tax.
From 1988 to 1990, Amoco engaged in repeated attempts to
obtain a technical correction of section 901(i).
Also from 1988 to 1990, Amoco, with help from EGPC, the
Petroleum Ministry, and the U.S. Ambassador to the ARE,
endeavored to persuade the U.S. Treasury Department and the
Congress regarding the status of EGPC as a part of the Egyptian
Government and the nonapplication of the indirect subsidy rules
to entities like EGPC.
Egyptian Resolution of Credit Issue
On March 20, 1991, Jim Lenahan, assistant general tax
counsel of Amoco, consulted Nordberg on whether Amoco should ask
the Egyptian Government "to remedy the Egyptian deal either
prospectively or retroactively."
On December 24, 1991, Miller & Chevalier, petitioner's
counsel in this case, outlined a "program" for obtaining
assistance from the Egyptian Government. The program proposed
meetings between senior Amoco personnel and senior Egyptian
officials, as well as lower-level meetings. The program
contemplated convincing EGPC and the Petroleum Ministry to change
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