US law firm files suit against Yukos, alleges "false statements"

A US law firm representing US shareholders in Russian oil giant Yukos said on its website it had filed a class action lawsuit against the company accusing it of having issued false statements.

"The complaint alleges that Yukos ... issued materially false statements," the law firm Murray, Frank and Sailer said, adding that the suit was filed in a New York court.

"Specifically, defendants created a complex network of shell companies to evade taxes on the production, refining and sale of oil and oil products.

"These shell companies were registered in territories with preferential tax treatment in order to receive special tax exemptions and minimize tax liability."

It added that since the alleged shell companies were not separate legal entities, "Yukos was required to recognize the full amount of the receipts associated with these transactions for its own tax purposes and was not entitled to the preferential tax treatment these shell companies were granted.

"Accordingly, Yukos' tax liability was materially understated and its earnings were materially overstated."

Yukos faces a 3.4 billion-dollar (2.8 billion-euro) tax claim for 2000, which has been validated by the courts. The tax ministry has also filed a nearly identical claim for 2001 and hinted further bills for 2002 and 2003.

Analysts have warned that Russia's largest oil producer could face a total claim of eight billion dollars in back taxes from the government as a result of an investigation many observers say is Kremlin retribution for the political ambitions of its principal owner Mikhail Khodorkovsky, currently on trial on fraud charges.

Yukos, which pumps nearly one in five barrels of Russia's oil production, has been prevented from making payments by a court order that has frozen its accounts and assets and has warned that it may be forced to file for bankruptcy.

HERE