VimpelCom Issued With Claim For Additional Back Taxes

by Tatiana Smolenskaya, Tax-News.com, Moscow

30 December 2004

Russian telecommunications firm VimpelCom has received a preliminary claim for back taxes, fines and penalties relating to the year 2002, the firm announced this week.

In a statement, the Russia’s second-largest mobile phone company stressed that the claim for the sum of 680.6 million rubles (US$20.9 million) is not a final demand by the tax authorities, and is merely a preliminary notice.

Company officials are currently reviewing the claim and may decide to object to all or part of it.

The firm also revealed that it is engaged in “constructive discussions” with the tax authorities regarding the preliminary conclusions of a 2001 tax review which resulted in a 4.4 billion ruble (US$157 million) claim for back taxes.

The statement added that the firm is anticipating a review of its tax position for the year 2003, although it was unable to predict when this will arise or how much the tax authorites may claim.

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