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The Arabic version of Article IV(f)(6) added the word
"minha" after the word "deduct" (which appears as "takhssim").
The parties do not see eye to eye on the English translation
of the Arabic version. Petitioner contends that the correct
translation of the Arabic version of Article IV(f)(6) is:
In calculating its A.R.E. income taxes, EGPC shall be
entitled to deduct therefrom all royalties paid by EGPC
to the GOVERNMENT and AMOCO [Egypt]'s Egyptian Income
Taxes paid by EGPC on AMOCO [Egypt]'s behalf.
Respondent contends the correct translation is:
When EGPC undertakes to calculate income taxes imposed
on EGPC in the A.R.E., EGPC is entitled to subtract
therefrom (or, to credit against them) all of the
royalties EGPC has paid to the government and Amoco
[Egypt]'s Egyptian income taxes which EGPC has paid on
behalf of Amoco [Egypt].
Respondent concedes that the phrase in parentheses, "or, to
credit against them", is not in the original.
The two relevant differences between the translations are:
(1) Whether the Arabic word "takhssim" means "deduct" or
"subtract"; and (2) the meaning to be attributed to the inclusion
of the Arabic word "minha", meaning "therefrom", following
"takhssim".
Regarding the first difference, petitioner's expert argues
that "takhssim" translates only to "deduct" and that the Arabic
word for "subtract" is "yatrah", which is not present.
Respondent's expert argues that "takhssim" is a general term
meaning "subtract", which needs direction by a prepositional
phrase regarding from where to subtract. We think that this is a
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