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Russia's VimpelCom cell giant hit with $70.5 mln back tax claim

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MOSCOW, June 19 (RIA Novosti) - VimpelCom (RTS: VIMP) said Monday it had been served a demand for 1.91 billion rubles ($70.5 million) in back taxes for 2003-2004 by Russia's tax authorities.

Russia's second largest cellphone operator said the demand included 1.5 bln rubles ($55.5 mln) in tax arrears, as well as 405 mln rubles ($15 mln) in fines and penalties.

VimpelCom, which operates under the Beeline trademark in Russia, said it would contest the results of tax authorities' checks for 2003-2004. The company said its tax records showed it had over-paid for 2003 and 2004 by 796 mln rubles ($29.44 mln), and that it had sent its demands to the tax authorities.

The authorities accepted the company's claim, the statement said, and informed VimpelCom that it would refund 795 mln rubles ($29.4 mln).

The VimpelCom group includes cell phone operators in Russia, Kazakhstan and, following recent acquisitions, in Ukraine, Tajikistan and Uzbekistan. The group is licensed to provide mobile phone operations to a region home to 232 million people, and covers 94% of Russia's population in 78 out of 88 regions.

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