Board Unanimously Approves Transfer of Rights to Funds from Egyptian Tax Authority to Social Fund "Tahya Misr"
13 November 2014
OCI N.V. (NYSE Euronext: OCI) announced today that its Board of Directors has approved the transfer of the rights to amounts paid to the Egyptian Tax Authority (ETA) in April 2013 (EGP 2.5 billion or approximately $ 360 million) to the Tahya Misr (“Long Live Egypt”) social fund in Egypt, which was set up in July 2014 to support the Egyptian economy.
OCI had paid this amount as part of an EGP 7.1 billion settlement with the ETA regarding a tax dispute initiated by the previous regime. On 4 November 2014, the independent Appeals Committee ruled in OCI’s favor, cancelling the previously agreed settlement. The Ministry of Finance in Egypt subsequently issued a statement stating that the company is not required to pay taxes according to the Committee’s decision.
Nassef Sawiris, Chief Executive Officer of OCI N.V. commented: “With closure of the tax dispute case in favor of the company, and a solid outlook for Egypt, I am pleased that the board shared my view that Egypt will offer significant investment opportunities in the future."
Michael Bennett, Chairman of the Board of Directors of OCI N.V. commented: “We are of the firm belief that this transfer of rights gives strong support to this important initiative that will invest in the future of Egypt. We acknowledge that Egypt, where OCI already has substantial investments and continues to invest, offers an abundance of growth opportunities”.