MForum.ru
07.07.2006,
Moscow and New York (July 6, 2006) — Open Joint Stock Company "Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP), today announced that it has received the final decision of the review of VimpelCom’s 2003-2004 Russian tax filings by its tax inspectorate. The decision states that the Company owes an additional 1,809 million rubles in taxes (including 349 million rubles in fines and penalties), which is approximately US$ 67.4 million (including approximately US$ 13 million in fines and penalties).
Over 55% of the amount set forth in the final decision relates to the tax inspectorate claiming that, in their opinion, the Company incorrectly deducted doubtful and bad subscriber debt which, however, can be partly deductible in 2005.
In light of the fact that, in the course of the Company’s discussions about the preliminary tax act with the tax inspectorate, the Company and the tax inspectorate agreed that refunds to the Company’s subsidiaries that have been merged with and into the Company in the amount of 362 million rubles, which is approximately US$ 13.5 million, may be used by the Company and that the Company earlier received confirmation that it overpaid 2003-2004 taxes in the amount of 795 million rubles, which is approximately US$ 29.6 million, the total net amount to be paid is 652 million rubles, which is approximately US$ 24.3 million.
VimpelCom does not agree with the claims of the tax authorities and plans to subsequently appeal its position in court, which may result in a further decrease of the above mentioned amount.
VimpelCom Group (Beeline trademark) comprises cellular operators providing their services in Russia and Kazakhstan, as well as newly acquired cellular operators in Ukraine, Tajikistan and Uzbekistan. The VimpelCom Group's license portfolio covers approximately 232 million people. Geographically it covers 78 regions in Russia (with 136.5 million people, representing 94% of Russia's population) as well as the entire territories of Kazakhstan, Ukraine, Tajikistan and Uzbekistan. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange ("NYSE"). VimpelCom's ADSs are listed on the NYSE under the symbol "VIP".
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