Cairo - Algeria has told Orascom Telecom that it owes 596.6 million dollars in back taxes and penalties, the company said in an overnight statement Wednesday, promising to fight the decision.

"The reassessment is based primarily on the unfounded and unacceptable allegation that (Orascom Telecom Algeria) did not keep proper accounts for the years 2005, 2006 and 2007," Orascom said, adding that its books were audited by local and international accountants.

Orascom, based in Cairo, said it plans to "take all necessary legal steps to challenge the reassessment through all available administrative and judicial channels to defend its reputation, integrity and rights."

The Algerian subsidiary, which has nearly 15 million mobile subscribers in the country, said the legal issue could affect dividends.

Naguib Sawiris, Orascom's chairman, on Tuesday said the company was evacuating its Egyptian staff from Algiers after "thousands" of Algerian football fans burned and looted Orascom's compound in Algiers, causing millions of dollars' worth in damages.

Tensions between Egypt and Algeria have been high ahead of Wednesday night's World Cup qualifier final between the two countries in Sudan. (dpa)