OREANDA-NEWS. On 18 June 2008 was announced, that the ninth Arbitration Court of the city of Moscow invalidated the 2003-2004 tax claims against Uralsvyazinform for a total of Rub 556.7 mln, which were filed back in 2006.

On December 1, 2006 a decision was issued to Uralsvyazinform from Inter-Regional Inspectorate #7 of the Financial Service of Russia for Large Taxpayers on charging the taxpayer with tax liability.  Based on the results of a field tax audit, the company, in the opinion of the tax authority, failed to pay Rub 561.3 mln in taxes, while Rub 107.4 mln were assessed as fines and Rub 87.9 mln as penalties.

The company challenged the decision handed down by the Inter-Regional Inspectorate of the Tax Service of Russia.  The court of general jurisdiction in a ruling dated October 17, 2007 invalidated claims by the tax authority amounting to Rub 372.1 mln (66.3% of the alleged arrears not counting the fines and penalties assessed).  In addition, the court failed to uphold a lawsuit filed by Uralsvyazinform with respect to the termination of ILD traffic amounting to Rub 187.2 mln.  The operator disagreed with the court’s ruling and thereafter filed an appeal.

On May 21, 2008 the ninth Arbitration Court of the city of Moscow invalidated the tax claims against Uralsvyazinform for a total of Rub 556.7 mln, which were filed by the tax authority (99.2% of the alleged arrears not counting fines and penalties). The exact amount of the fines and penalties is to be clarified in view of the ruling and overpayment made for taxes during the audit period.

The court’s decision shows that Uralsvyazinform is a bona fide taxpayer.  For the record, the company paid Rub 7.8 mln in taxes and fees to the budgets at all levels in 2003-2004.