The British Council confirmed in a statement published on its website last week that it had received a tax bill in Moscow in May 2008 in respect of British Council activity in 2004-06, which was the result of a tax inspection that took place during 2007.

However, the statement went on to emphasize that the British Council has "responded fully in accordance with the Russian tax code" and has already made the "appropriate payment".

"We are following common procedure in Russia and challenging certain elements of the bill that we consider incorrect. Both Russian and international organisations routinely challenge bills from the tax authorities and this is what the British Council is doing in the case," the statement explained.

"The British Council is registered for and pays tax in Russia and has complied with all requests of the tax authorities in respect of its activities. We work globally on a not-for-profit basis," it added.

The first hearing of the Council's case against the Federal Tax Service was due to be heard in a Moscow court on 19th June, but has been postponed until 3rd July at the request of the tax service.

Neither side has revealed the extent or the nature of the back tax claim.

However, the British Council, a non-profit organisation, has previously been in dispute with the Russian tax authorities for supposedly operating illegally for commercial gain, and in January, 10 members of staff from its St Petersburg office were interviewed late at night in their homes after calls by the Russian tax police.

Mikhail Margelov, the head of the Russian Federation Council's international affairs committee, told Interfax at the time that the British organisation and its regional branches had been "actively engaged in commercial activities for years".

However, the Council, supported by the British government, believes that the Russian actions have more to do with an ongoing diplomatic rift between London and Moscow.

"We are dismayed that we have been embroiled in what is evidently a political dispute," the Council responded at the time.

It concluded: "The British Council is registered for tax in Russia, its name and logo are registered, and it has complied with all the requests of the Russian authorities in respect of tax and other legislation. We are a not for profit organisation and do not carry out any income generating activity in Russia."