China's Huawei forced to pay taxes in Russia

Legislation Rules igry13-11-2009 China Huawei forced to pay taxes in Russia in the Moscow Arbitration Court received a claim from a Chinese company Huawei, which can become a precedent. The lawsuit challenges the tax charge on profits Moscow office of $ 706.7 million rub. Tax, VAT and penalties for the years 2005-2006. Believed in the company, the activities of the Moscow representative office falls under the agreement on avoidance of double taxation. Russian tax authorities claim that the representation is in the territory of a full and permanent business. Agreements on avoidance of double taxation define the rights of each state tax organizations, one state having the object of taxation in another state. Russia Russia has signed 70 such agreements, many of which were made in Soviet times, in particular the multilateral Convention, signed in Madrid in December 1979. Earlier, President Dmitry Medvedev has called for tougher anti-tax schemes. It is a statutory authority and mechanisms to counter the use of agreements on avoidance of double taxation in order to minimize taxes when trading with foreign companies, when the final beneficiaries are not resident in a country with which an agreement, the president believes.