The Algerian tax authority has levied US$230 million of back taxes on Orascom Telecom's Algerian subsidiary Djezzy, company officials announced.
The taxes were incurred during the 2008-2009 fiscal year, according to the tax authority.
An Orascom press statement, however, said the company paid its taxes in full during this period.
Djezzy representatives said the company may seek International arbitration.
Russia's Vimpelcom recently intervened to help mediate the dispute. Algerian authorities, however, rejected negotiations with the Russian company because of its merger with Weather Investment, a company owned by Egyptian business tycoon Naguib Sawiris, earlier this year.