Russian court tells Bloomberg to pay 3.9 mln dollars: report

8th December 2010, Comments 0 comments

Moscow's arbitration court Wednesday ordered the US news agency Bloomberg to pay 120 million rubles (3.87 million dollars) in fines and taxes.

The court sided with the Russian tax authority, which claims that Bloomberg owes 119.9 million rubles in fines and back taxes for 2006 and 2007, the online newspaper reported.

Bloomberg argues that the company should be exempt from taxes in Russia as it merely collects information for the head office, which is not a commercial activity.

The agency argues that its sales occur in the United States, where it already pays taxes.

But the Russian tax authorities said that local tax laws applied to Bloomberg revenues for the years in question, which saw the Russian office turn a profit of one billion rubles (32 million dollars), the newspaper reported.

Bloomberg's Moscow bureau declined to comment on the case Wednesday.

© 2010 AFP

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