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petroleum companies that the EGPC tax credit problem would be
resolved. Banbi realized that EGPC's tax credit could be changed
at no cost to Egypt. Banbi further made it clear that he knew
the change would have some unfavorable impact on EGPC and on the
Petroleum Ministry, and would have a favorable impact on the
Finance Ministry, and that the bonuses of EGPC's top managers
would be less, while the bonuses of the top managers at the
Finance Ministry would rise.
At the May 13, 1992, meeting, Chiati raised the issue of
obtaining an interpretative law approved by the People's
Assembly, regarding EGPC's right to a deduction. Banbi quickly
dismissed the idea because, while in the end he thought the law
would be passed, it would take too long and would subject him to
scrutiny and criticism. Banbi preferred an administrative
solution, particularly in light of the opportunity presented by
the ETD audit.
Chiati also inquired whether EGPC might seek an opinion in
the State Council that could overrule the ETD's rejection of
EGPC's tax credit position. Banbi initially thought that might
occur, but later indicated that EGPC would agree with the ETD and
not seek such an opinion.
Near the end of the meeting, Amoco indicated it would be
helpful to have official ARE documents showing, inter alia, that
the EGPC tax dispute had been resolved in a manner consistent
with normal resolution of disputes between different branches of
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