icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Electrics retailer hit with massive tax bill

Russia’s biggest household appliances chain, Eldorado, is facing a tax claim of more than $US 300 million. Eldorado's owner Igor Yakovlev says he may have to sell off part of the business to pay the bill.

Eldorado has a 28 per cent market share in Russia and Ukraine. Its turnover reached $US 6 billion last year.
The electronics and home appliance retail chain has been charged with non-payment of taxes on a large scale.
Federal tax inspectors launched the audit in 2006 and the preliminary bill is as high as $US 330 million.
The retailer’s spokesman Ilya Novokhatsky says the company will contest the claim in court.
“We have an official act from the tax authorities with this tax claim. Now we are contesting this claim because we do not agree with the sum and we do not agree with the methods by which the sum was calculated,” Novokhatsky said.
Eldorado is not the first large retailer that has recently received huge demands for back tax.
The head of the perfume chain Arbat Prestige was arrested in January for evading tax of $US 2 million.
Retail analyst Tatyana Bobrovskaya says such tax claims have scared off international players who previously were considering the Russian market.
“One of the factors holding them back is the actions of the regulatory bodies here. Only when the risks of tax claims are minimised will we see more international retailers in Russia,” Bobrovskaya said.
These risks are thought to be one of the reasons why the British retailer Dixons did not exercise its option to buy a 10 per cent stake in Eldorado last year, believed to be worth in the region of $US 200 million .
And concerns about the regulatory outlook for Eldorado may limit its ability to find fresh funding on the financial markets.

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.