In July, world attention focused on Russia, as the Group of Eight summit convened in St. Petersburg. Russia was invited to join the G8 in 1998 both to recognize and to encourage its transformation to a market-based democracy. It’s been 16 years since the Russian Federation formally declared its independence from the Soviet Union.

Is the company calculating its taxes correctly? Business owners and management ask this question more or less regularly.

The biggest tax case in Russian history, Tax Office v Yukos, is receiving significant attention. The Yukos decision raises several important points of Russian tax law. <P>The profits made by companies related to Yukos and registered in Russian internal offshore zones were 'allocated' to Yukos.