- 71 -
tax credit purposes whether EGPC took a credit. Respondent's
assertion of ratification confuses knowledge (which Amoco and
Amoco Egypt had) with approval (which they did not give).
Respondent emphasizes that, in Amoco's ruling requests,
Amoco never stated that EGPC was claiming a credit for taxes paid
on Amoco Egypt's behalf. We are not persuaded that, given its
view as to the governmental status of EGPC, Amoco was obligated
to detail the factual basis for its assertion that no subsidy was
involved, see infra p. 91. In any event, any failure on the part
of Amoco to discharge any such obligation would simply be with
respect to Amoco's ability to rely on those rulings. Neither the
rulings nor the facts on which they were premised are relevant to
our determination.
Of greater significance than the foregoing analysis of the
meaning of Article IV(f)(6) and the relevant Egyptian tax law is
the ruling of the ETD to which we now turn our attention.
From 1975 to 1992, EGPC claimed a credit each year against
its income taxes for Amoco Egypt's income taxes, and its actions
were not challenged by the ETD for the taxable years through June
30, 1980. In 1992, after reviewing the MCA, the ETD determined
that EGPC was not entitled to such credit. EGPC, at the urging,
and with the approval, of the Minister of Petroleum, acquiesced
in the ETD determination and agreed to pay back taxes, calculated
on the basis of a deduction of Amoco Egypt's taxes.
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