Source: Court Throws out Most of MTS' 1.3 Bln Rbl Tax Claim

MOSCOW, Feb 19 (Prime-Tass) -- Russia's Moscow Arbitration Court on Monday threw out most of a 1.284 billion ruble back tax claim against Russian mobile operator Mobile TeleSystems (MTS), sources close to the hearings told Prime-Tass.

The court reduced the claim by about 1.2 billion rubles.

In September 2006, MTS received a 1.284 billion ruble back tax claim, including 307.9 million rubles in penalties, for 2003-2004, MTS said then. Initially, the tax claim amounted to 1.142 billion rubles, excluding penalties, but tax authorities reduced the claim to 975.72 million rubles after MTS disputed the amount, the mobile operator said.

The tax authorities claimed that MTS incorrectly calculated taxes due on payments to and from content providers, differences in foreign exchange rates during revaluation of assets and liabilities denominated in foreign currencies, and mutual payments for traffic routing.

In 2005, MTS received a back tax claim amounting to 373 million rubles for 2002, which was later reduced to 30 million rubles by a court ruling.

(26.2358 rubles - U.S. $1)

End"

Posted to the site on 19th February 2007