Iraqi appeals court upholds 187 mln Zain Iraq tax ruling

3/31/2016 1:23:15 PM

(MENAFN- The Peninsula)

DUBAI: An Iraqi appeals court hasupheld a ruling that obliged the local unit of Kuwait's Zainto pay a $187 million tax bill related to theacquisition of a rival operator from Egypt's Orascom Telecom in2007.

Iraq's tax authority has claimed from Zain Iraqthe country's biggest mobile operator by subscribers capitalgains tax worth $187 million from its $1.2 billion purchase ofIraqna. A bank account freeze on an amount equivalent to the taxbill was imposed.

Unusually the government has tried to levy capital gains onZain Iraq as the asset buyer rather than on the seller Egypt'sOrascom Telecom which was later renamed Global Telecom.

"The court of appeal has issued a decision about the case onMarch 30 to uphold the decision of the primary court that hadruled not to accept [Zain Iraq's] claim" a bourse statement

from Zain the majority shareholder in Zain Iraq said onThursday.

"The company has a right to appeal the decision at thecassation court within 30 days and the company will offer anappeal in the coming days" the statement said.

Reuters

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