Illegality of charging Renault Samara $7.54mln in additional taxes confirmed
The Eleventh Commercial Court of Appeals has confirmed that it is illegal to recover $7.54 million in additional taxes from Renault (Samara’s branch).
The appeal was submitted to the court by the Samara Regional Inter-District Tax Inspectorate.
The tax inspectorate appealed against the Samara Regional Commercial Court’s July 4 decision satisfying Renault Samara’s lawsuit.
The tax inspectorate’s October 20 decision to make the company liable for tax offences was declared void, as was its request for taxes, penalty interest and fines amounting to 239.3 million rubles ($7.55 million) as of January 19.
The tax inspectorate held that the company wrongfully took advantage of a tax withholding based on its relationship as a tax agent under an agreement with the French Renault S.A.S.
However, the court found that the tax inspectorate’s position was not based on rules of international law and disregarded relevant facts.
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