Zain to pay $94m to settle Iraqna tax dispute
Zain will pay $94 million to settle a tax dispute in Iraq over its $1.2 billion acquisition of Iraqna from Orascom Telecom, now Global Telecom.
The dispute arose when the Iraqi government claimed Zain Iraq owed $187 million in capital gains tax on the takeover, which was completed in 2007.
Kuwaiti operator Zain has said it will now settle the dispute with Iraq’s General Commission of Taxes (GCT). In return, GCT will drop its claim against the Iraqi unit, and cancel all associated interest and penalties owed, according to Reuters.
Zain Iraq will also be allowed to appeal against additional tax assessments on itself and Iraqna between 2004 and 2010. The government will also lift any restrictions that have been placed on Zain Iraq’s bank accounts.
Zain Iraq debuted on the Iraqi stock exchange in June of last year. Restrictions placed on its shares will also be lifted under the settlement.