Moscow Federal Arbitration Court dismissed the complaint placed by OAO MRSK Urala regarding 1 billion RUR worth of tax, Kommersant reports.

The company was accused of tax evasion in 2004-2005 by Tax Inspectorate No. 4 that is in charge of dealing with the largest taxpayers. For one, the tax officers claimed that the VAT deductions OAO Sverdlovenergo used when buying Kazakh coal from ZAO Uralo-Kazakhskaya Kompaniya were illegitimate.

The tax inspectorate analysts detected that in 2004-2005, OAO Sverdlovenergo actually owned 20% of ZAO Uralo-Kazakhskaya Kompaniya and was, in fact, its only active co-founder at the time. The other owners of the company turned out to be ad hoc firms, while the money received for the coal were transferred to the accounts on some other organizations that never dealt in any real business activity, the newspaper explains.

OAO MRSK Urala appealed against these tax claims, but the court of appeals ruled in favor of the tax inspectorate. Moscow Federal Arbitration Court dismissed the company’s complaint as well.