Appeals court invalidates additional tax charge on Christian Dior subsidiary
MOSCOW, May 2 - RAPSI. The Ninth Commercial Court of Appeals has affirmed the court decision invalidating an additional charge of $681,000 in taxes on Christian Dior's Russian subsidiary.
The appeal was filed by the Federal Tax Service's inspectorate in Moscow.
The tax inspectorate sought to cancel the Moscow Commercial Court's February 16 judgment in favor of Christian Dior Couture Rus.
The perfume company had filed a lawsuit against the Federal Tax Service's resolution as of March 3, 2011. The service then charged the company additional profit tax, relevant fees and penalties, as well as VAT and property tax.
The tax inspectorate inspected the plaintiff's documents for the tax period from January 1, 2007 to December 31, 2009 and concluded that the plaintiff had illegally spent part of its taxable funds to pay for the contractor's services.
The defendant believes that the cost of design documentation development must be written off from the taxable base as it is a part of the capital investment in the leased property.