OREANDA-NEWS. November 06, 2009. As Uralkali reported in its IFRS interim financial statement for the first six months of 2009, in August 2009 the company received a field tax audit report for 2005–2006 in which the tax authorities stated that in October 2006 the company should have been charged mineral extraction tax in relation to the Mine 1 accident in the amount of 604 million roubles.

Uralkali has now received the decision of Interdistrict Inspectorate of the Federal Tax Service for Major Taxpayers. The tax authority proposes that Uralkali pay 613 million roubles in tax for 2005–2006 together with a penalty charge of 121 million roubles and penalty interest of 58 million roubles. This amount includes about 604 million roubles of mineral extraction tax for October 2006 (the tax period during which the Mine 1 accident occurred).

The company believes that the conclusions of the tax authority are without merit and intends to challenge this decision in accordance with applicable law.