- 59 - In calculating its A.R.E. income taxes, EGPC shall be entitled to deduct all royalties paid by EGPC to the GOVERNMENT and Amoco's Egyptian Income Taxes paid by EGPC on Amoco [Egypt]'s behalf. The Arabic version of Article IV(f)(6) is the same except for the addition of the Arabic equivalent of "therefrom" after the phrase "to deduct". During the years at issue, EGPC interpreted Article IV(f)(6) as authorizing it to credit the Egyptian income taxes of Amoco Egypt against its Egyptian income taxes rather than to deduct such taxes in calculating its income. The determination of petitioner's entitlement to a foreign tax credit under section 901 depends upon the resolution of the following issues: (1) Whether Article IV(f)(6) authorizes EGPC to take a credit for Amoco Egypt's Egyptian income taxes paid by EGPC. Analysis of this issue involves consideration of whether the MCA is a contract or a law of the ARE, including consideration of the impact of the variation between the English and Arabic versions of Article IV(f)(6), and, in either case, consideration of the intent of the parties and the extent to which such intent should be taken into account. (2) The impact of the position of the Egyptian Tax Department over the years in respect of the taking of the credit by EGPC, and particularly its action in 1992, disapproving suchPage: Previous 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 Next
Last modified: May 25, 2011