OREANDA-NEWS  On 23 October was announced, that the Federal Arbitration Court of the Moscow region reviewed the second appeal filed by Inter-Regional Tax Inspectorate #7 of the Russian Tax Service in charge of large taxpayers against a ruling handed down by the Moscow Arbitration Court (MAC) and the verdict issued by the 9th Court of Appeal to impose tax liability against CenterTelecom on the basis of results of a field audit of the company’s financial records for 2004-2006. The court left the ruling of the court of common jurisdiction unchanged and refused to uphold the tax inspectorate’s second appeal.

In October 2007 Inter-Regional Tax Inspectorate #7 of the Russian Tax Service adopted a decision on the basis of a tax audit of CenterTelecom’s financial records for 2004–2006 to impose tax liability against the taxpayer for an alleged tax violation. The tax authority’s tax claims against the company totaled Rub 440 mln, with Rub 343 mln falling to taxes and Rub 97 mln to fines and penalties. CenterTelecom challenged the tax body’s decision with the Moscow Arbitration Court (MAC). In accordance with the court’s ruling issued on March 26, 2008, the tax authority’s Rub 440 mln claims were declared to be unfounded.

In response to the MAC ruling Inter-Regional Tax Inspectorate #7 of the Russian Tax Service lodged an appeal with the 9th Arbitration Court of Appeal. Based on ligitation proceedings the court ruled to reject the appeal and leave the ruling issued by the court of common jurisdiction unchanged. Inter-Regional Tax Inspectorate #7 filed a second appeal against the MAC ruling and the resolution of the 9th Arbitration Court of Appeal with the Federal Arbitration Court of the Moscow region. Following relevant proceedings the court ruled to uphold the ruling handed down by the court of common jurisdiction and the resolution of the court of appeal, and to reject the second appeal.