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Wednesday, 19 June 2019

Veon in final talks with the government over tax settlement

DISPUTE WATCH- Veon in final stages of talks with the government over EGP 2.2 bn tax settlement for GTH: Telecom group Veon is in the final stages of talks with the Madbouly government to finalize a EGP 2.2 bn tax settlement that would end a dispute between the Tax Authority and its subsidiary Global Telecom Holding (GTH), a source with knowledge of the talks told us. The local press reports that the talks are focused on the payment scheme of the settlement, with the government wanting to receive the bulk of the payment before the end of the month. The ministry wants GTH subsidiary Ring Distribution Company to pay off its outstanding real estate taxes, after the Tax Authority launched a court appeal to demand payment.

When can we expect an agreement? Yesterday’s report suggests that a settlement could be signed next week. Our sources told us last week that the agreement could be done and dusted by the middle of the month.

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