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ETD concluding that the EGPC credit should be changed to a
deduction, A. Radwan responded no, but that he may change his
mind.
On May 18, 1992, Pitman sent a letter to Banbi setting forth
his understanding of the issues resolved at the May 13, 1992,
meeting, including that EGPC's credit practice would be changed
retroactively, and asking for confirmation of such. By letter
dated May 21, 1992, Banbi replied to Pitman's letter, confirming
its contents and that he had issued instructions to the concerned
staff in EGPC to draft suitable proposals to that end.
Also by letter of May 21, 1992, Banbi wrote the Minister of
Finance concerning the dispute between EGPC and the ETD, and the
dispute between the IRS and U.S. oil companies operating in
Egypt. Stating that such readjustments would have no bearing on
the total amounts to be channeled to the Finance Ministry, Banbi
requested the approval of the Minister of Finance of a procedure
whereby EGPC's past payments of surplus to the Finance Ministry
would be set off against its adjusted tax liability for prior
years. A copy of Banbi's letter was forwarded to the head of the
Department of Tax on Joint Stock Companies. The ETD responded to
Banbi's letter by memo dated May 26, 1992, stating that EGPC had
theretofore disputed the ETD's determination that it was not
entitled to a tax credit.
On May 24, 1992, A. Radwan requested that Amoco help EGPC
sort everything out with the Finance Ministry. Between June and
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