Philip Morris Izhora, PM’s biggest cigarette making facility in Russia, has demanded in court that the US$ 15.5 million profit tax payments levied over six months of 2004 had been charged as a result of misinterpretation of the tax break previously given to the company by the regional government, and are to be refunded.

That the company’s claims are well-founded has already been ruled in arbitration court, but the regional tax authorities persist in appealing against the judgement. The next appeal is to be considered in the court of appeal within a month’s time, reports the business daily Vedomisti. (vt)