Zain Group’s [ZAIN.KW] subsidiary in Iraq, Zain Iraq agreed to pay USD94mn (KWD28.8mn) to the General Commission of Taxes (GCT), Iraq’s tax authority, to settle a case relating to the acquisition of Iraqna from Global Telecom Holding (GTH) [GLTDQ.L] (Orascom Telecom Holding at the time) back in 2007. GCT had originally claimed USD187mn (KWD57.2) and levied the capital gain tax on the buyer of the asset (Zain Iraq) not the seller (GTH). Zain Iraq had acquired 100% of Iraqna’s shares for a total of USD1.2bn in 2007. GCT will drop all claims against Zain Iraq and the company will be allowed to appeal against additional tax assessments on itself and Iraqna for the periods, 2004-2010 and 2004-2007. It is also worth noting that the restrictions on Zain Iraq’s bank accounts, which had been frozen, will be lifted and part of the settlement will be paid from these accounts. (Zawya)   Zain Group: KWD0.42 as of 21 Dec 2016, Rating: Buy, TP: KWD0.49/share, MCap: USD5,857mn, ZAIN KK / ZAIN.KW Global Telecom Holding: USD1.80 per GDR/ EGP7.50 per share as of 21 December 2016, Rating: Buy, TP: USD2.93 per GDR/ EGP10.48 per share, MCap: USD1,888mn, GLTD LI / GLTDQ.L