Tuesday, August 10, 2010

Russian Authorities Accuse Bloomberg News of Tax Evasion

Moscow's tax authorities have ordered the Bloomberg news agency to pay approximately $4 million in profit taxes for the years 2006 and 2007, but the company refuses to pay, arguing it does not maintain a permanent establishment ("postoyannoye predstavitel'stvo") in Moscow and is therefore exempt from the tax under a U.S.-Russia Tax Treaty designed to avoid double taxation. According to the Moscow Times, this is the first time a U.S. company working in Russia has been charged with tax evasion on these grounds.


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