Friday, August 10, 2012

Moët Hennessy Wins $1 Mln Tax Case in Russia

The Moscow Commercial Court has ruled in favor of Моеt Hennessy International's Russian subsidiary Moet Rus by overturning a $1.04 million tax service assessment, including fines, against the company. The penalties were charged against the company following a 2009-2010 audit. Moet Rus appealed the tax service's decision in court. In participial, Moet Rus paid dividends to its Cyprus parent, MHWH Ltd, and, as a tax agent, withheld taxes amounting to five percent. This rate is stipulated by the bilateral agreement between Russia and Cyprus on double taxation. But the tax service ruled that the 15 percent rate applies since Moet Rus allegedly have not proved that MHWH Ltd was based in Cyprus. The court, however, found that the 2008 tax residency certificate from the Cyprus authorities was sufficient grounds to confirm the company's status.

http://www.rapsinews.com/judicial_news/20120810/264213254.html

No comments:

Post a Comment