On December 15, 2009, a session of Moscow District’s Federal Arbitration Court was held, where the Federal Tax Service’s Interregional Inspectorate for Largest Taxpayers No. 7 was denied satisfaction of its cassation appeal regarding the tax claims to North-West Telecom for the years 2005 – 2007.

Having secured recognition of the additional charge of taxes in the amount of RUR 204 million, as well as penalties and fines, for 2005-2007 as groundless before all instances, N.W.Telecom has proved its reputation of a law-abiding taxpayer operating within the legal framework.

It should be reminded that on November 24, 2008, the resolution of the Federal Tax Service’s Interregional Inspectorate for Largest Taxpayers No. 7 was obtained concerning the results of the scheduled field audit of the N.W.Telecom activities in 2005-2007. According to the audit results, the amount of tax payment claims was RUR 204 million of taxes. In November 2008, N.W.Telecom filed an appeal at the FTS, but having received no reply from the supervisory authority, it filed an action at the Arbitration Court of Moscow, which action was finally satisfied. The Ninth Arbitration Court of Appeal left the judgments of the Arbitration Court of Moscow standing.