Russian court marginally reduces Yukos' back taxes bill

A Moscow court on Friday ruled to marginally reduce the multi-billion US dollar back-tax bill the tax ministry has ordered the embattled oil giant Yukos to pay.

The Moscow Arbitration Court lowered by about 1.1 million dollars the 3.4 billion dollars in 2000 back taxes, interest and fines owed by Yukos, according to Interfax.

However, it rejected Yukos's plea to invalidate the tax ministry's decision.

The tax ministry accuses Yukos of evading taxes by channeling funds through offshore companies. On April 14 the ministry completed an audit of Yukos tax payments in 2000 and subsequently hit the company with a 3.4 billion-dollar tax demand.

Earlier on Friday, the court also refused a request by Yukos torecuse the judge in charge of the tax dossier submitted by the company.

Yukos said it would appeal the court decision.

The company's 3.4 billion US dollar back-tax bill for 2000 is the first in a series of tax charges on the company levied after ayear-long investigation into Yukos, which many critics see as a Kremlin-inspired onslaught against Yukos former CEO Mikhail Khodorkovsky who reportedly sponsored opponents against President Vladimir Putin.

The company faces a similar claim for 2001 and is currently being audited for 2002.

The firm has warned that the tax bill will drive it into bankruptcy and has been trying to seek compromise with the government.

HERE