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At a meeting held August 24, 1992, regarding EGPC's 1980-
1981 tax year, the Internal Committee of the ETD determined that
EGPC was not entitled to a credit for taxes paid on behalf of
foreign partners, but was allowed to deduct such amount from its
revenues in computing taxable income. The Internal Committee
cited both the report issued by the Research Department and the
letter from Minister of Petroleum Banbi agreeing to its
conclusion. Such determination also applied to the 1981-1982 and
1982-1983 tax years.
On September 3, 1992, Pitman met separately with Banbi and
Shaarawy, where he stated Amoco's concern that EGPC do the right
thing procedurally in making up the tax delinquency. Pitman
stated it would be incorrect for EGPC to simply have the Funding
Sector transfer surplus paid to the ETD and that the correct
approach would be for EGPC to write separate checks to the
Funding Sector and to the ETD. Banbi replied that EGPC would do
the right thing procedurally and that he was prepared to lose his
job as minister as a result. Banbi also stated that, as
minister, he could issue a ministerial decree fixing the salaries
and bonuses of EGPC personnel so that they would not be affected
by lower surpluses.
In November 1992, at the request of petitioner's counsel,
the ETD issued a certificate confirming that it had reached a
final determination on the EGPC credit issue, as of May 1992, and
concluding that EGPC had erroneously deducted Amoco Egypt's tax
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