MOSCOW, September 11 - RAPSI. The Eleventh Commercial Court of Appeals has confirmed that it is illegal to recover $7.54 million in additional taxes from Renault Samara's branch, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com) on Tuesday.

The appeal was submitted to the court by the Samara Regional Inter-District Tax Inspectorate.

The tax inspectorate disputed with the appeals court the Samara Regional Commercial Court's July 4 decision satisfying Renault Samara's lawsuit.

The tax inspectorate's October 20 decision to hold the company liable for tax violations was declared invalid, as was its request for taxes, penalty interest and fines amounting to 239.3 million rubles ($7.55 million) as of January 19.

The tax inspectorate held that the company unlawfully took advantage of a tax deduction based on its relationship as a tax agent under an agreement with the French Renault S.A.S.

However, the court found that the tax inspectorate's position was not based on international law and ignored the facts.