In its Resolution of the 7.12.2005, the Federal Arbitration Court of the Moscow Circuit left a Ruling of the Arbitration Court of the City of Moscow of 28.07.2005 in force

The Inspectorate of the Federal Taxation Service №27 for the City of Moscow issued Demand №602 for payment of tax arrears and penalties by LLC “Alfa-Oil” as due on 3.05.2005.

LLC “Alfa-Oil” applied to the Arbitration Court of the City of Moscow, calling for the acknowledgement of the Demand for payment of tax №602 issued by the Inspectorate as invalid.

In the course of the consideration of the matter, attorneys from the law firm “YUST”, acting on behalf of LLC “Alfa-Oil”, stressed that the Demand in question was issued in violation of the provisions of p.4 art. 69 TC RF, insofar as it contained no data on the grounds for the levying of the tax and penalties; the demand was forwarded to the Taxpayer in violation of the period of limitations as established by art. 70 TC RF.

The Arbitration Court of the City of Moscow supported the arguments advanced by “YUST” attorneys, and in its ruling of 28.07.2005 declared the Demand issued by Inspectorate № 27 for the City of Moscow for the payment of tax №602 as invalid.

Moreover, the court of the first instance indicated that the argument of the taxation body that the overdue nature of the Demand does not constitute a violation of the taxpayer in fact runs counter to acting tax legislation.

In its Ruling of 7.10.2005 on the same matter, the Ninth Arbitration Court left the decision of the court of the first instance in force, and the appeal filed by Inspectorate №27 for the City of Moscow – unsatisfied.

The Resolution of the Federal Arbitration Court of 7.12.2005 left the decision and the resolution in force, and the appeals complaint of Inspectorate №27 for the City of Moscow – unsatisfied.