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audit adjustments with EGPC. Ismail inquired as to Momtaz' view
of Article IV(f)(6) of the MCA. Momtaz translated the English
version into Arabic and expressed his view that Amoco Egypt's
taxes should be treated as a cost by EGPC.
As of January 1992, EGPC's tax years up to the June 30,
1980, short year were closed, following ETD audits, appeals to
the Internal Committee on challenged positions, and the
expiration of the Egyptian statutory period of limitations.
Regarding EGPC's payment of taxes on behalf of foreign partners
for those years, it was never at issue whether EGPC was entitled
to a deduction or a credit for taxes paid. In reports discussing
the 1975 and 1976 tax years, and the 1977 and 1978 tax years, the
Internal Committee states that, in calculating its income taxes,
EGPC is entitled to "deduct therefrom the Egyptian income tax it
paid on behalf of Amoco", and allowed EGPC to deduct such amounts
from its tax base. There is no discussion of foreign partner
taxes in Internal Committee reports concerning the 1979 tax year
and the short year ending June 30, 1980. The Internal
Committee's review was focused on whether EGPC had substantiated
the payment of foreign partner taxes.
Also as of January 1992, notices of assessment for the 1980-
1981 to 1982-1983 years had been issued, which had not disallowed
EGPC's practice of taking a credit. No final assessment had yet
been made for these years.
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