Court Confirms Revocation of Ruling Issued against Uralkali
OREANDA-NEWS. January 17, 2011. Russian Federal Arbitration Court in Moscow Judicial Circuit ruled to leave standing the decision issued by the arbitration court of appeals and rejected the ruling and the claim issued by the Interregional Tax Inspectorate No. 3 for Major Taxpayers (a Russian Federal Tax Service division) for Uralkali to pay the mineral extraction tax of 604 million rubles for 2005-2006 together with charges and penalties. Thus, the court entirely dismissed the cassation appeal filed by the tax authorities against the decision issued by the lower court.
As Uralkali reported earlier, in August 2009 the company received a field tax audit report for 2005–2006. The report of the tax authorities specified that in October 2006 the company should have been charged mineral extraction tax of 604 million rubles on the reserves lost because of the Mine 1 accident.
In October 2009, the Interdistrict Inspectorate No. 3 of the Federal Tax Service for Major Taxpayers proposed that Uralkali pay back taxes for 2005–2006, including 604 million rubles in mineral extraction tax for October 2006, as well as charges and penalties. Uralkali received the tax claim for this amount in January 2010. The company then appealed to the courts against the decision and claim of the tax authority.
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