CHARGING YUKOS WITH MORE TAXES FOR 2003

MOSCOW, April 21 (RIA Novosti) - The Moscow Arbitration Court has validated the decision on adding a certain sum to the YUKOS tax debt for 2003, but the figure of the sum, that is 170 billion rubles, has been decreased by 72 million roubles, or 0.05 percent. Thus, the court has partially met the oil company's suit on invalidating the decision of the Federal Tax Service to add up another 170 billion rubles to the company's debt for 2003.

Besides, the court has exacted a penalty worth 68.9 billion rubles for 2003. This decision can be appealed against within a month.

The FTS's Yelena Alexandrova said that YUKOS set up a network of inter-dependable companies registered in regions with soft taxation.

"The entire scheme aimed at economizing on taxes and channeling the released funds to the Foundation of YUKOS financial support and development", said Alexandrova.

"There is evidence that those privileges were granted illegitimately," she noted.

She claims that the YUKOS subsidiaries were not involved in any economic activity, failed to create additional jobs in corresponding regions and to develop their economy.

YUKOS lawyers argue that not all these claims are substantiated. In their opinion, the inspectors have not proved the inter-dependence of YUKOS and the group of companies which were charged with additional taxes.

Besides, they consider that the worth of these claims is unjustifiably overestimated.

The FTS inspection passed its decision on December 6, 2004. Of the debt of 170 billion rubles, the sum of taxes amounts to 86.2 billion, the fines to 14.8 billion and the penalties to about 70 billion.