OREANDA-NEWS. On June 26, 2008 Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, announced that on 16th, 18th and 25th of June 2008 the Moscow Arbitration Court held hearings regarding the tax claims served by Inter-Regional Tax Inspectorate № 7 in charge of large taxpayers against Southern Telecommunications Company on the results of a field tax audit, reported the press-centre of UTK.

On the basis of the results of the tax audit of UTK’s financial records for the period from January 1, 2004 till December 31, 2006 Tax Inspectorate № 7 adopted a decision to impose tax liability against the Company for the violation of tax laws. The claims served against the Company totaled Rub 217,6 mln.

Southern Telecommunications Company disagreed with this decision of the tax body and challenged it with the Moscow Arbitration Court claiming to declare invalid the additional tax charges amounting to Rub 216,4 million.

On 25th June 2008 the Moscow Arbitration Court gave judgment for the dispute between Southern Telecommunications Company and Inter-Regional Tax Inspectorate № 7. The Company managed to prove that its positions were lawful in respect of all challenged matters.