Republic of Armenia Retains Manatt, Phelps & Phillips LLP to Sue Trans-World Telecom, OTE for Unpaid Profit Tax.LOS ANGELES--(BUSINESS WIRE)--June 29, 1999-- The Ministry of State Revenue of the Republic of Armenia Tuesday announced that it filed a lawsuit against Trans-World Telecom and OTE OTE Chiefly Brit (esp. in job adverts) on target earnings: the minimum amount of money a salesman is expected to make OTE abbr (Comm) (= on-target earnings) → Einkommensziel nt , the Greek telecommunications company See telecom company. . The lawsuit was filed to collect unpaid profit tax of at least $18 million, including fines and penalties of more than $10 million, due as a result of the sale of shares of Armentel, the Armenian telephone company, early in March 1998. Also named in the suit is TWT's parent company, which controlled and dominated TWT TWT The Washington Times TWT Traveling Wave Tube TWT Teaching with Technology TWT Time Will Tell (Robert Cray song) TWT Tri-Wizard Tournament (Harry Potter event) TWT Third Wave Technologies, Inc. . Armentel previously was owned as a joint venture by the Republic of Armenia and Trans-World Telecom, which is ultimately controlled through various tax devices by real estate developer Barry Hon of Orange County, Calif. Armenia and Trans-World sold their interests in Armentel to OTE. The Armenian government made various demands on TWT and OTE for payment of the tax but these demands were ignored. OTE was sued because under Armenian law, as purchaser of TWT's shares, it was required to withhold with·hold v. with·held , with·hold·ing, with·holds v.tr. 1. To keep in check; restrain. 2. To refrain from giving, granting, or permitting. See Synonyms at keep. 3. at source the profit tax owed by TWT and in turn to pay the money to Armenia's Tax Inspectorate in·spec·tor·ate n. 1. The office or duties of an inspector. 2. A staff of inspectors. 3. An inspector's district. inspectorate Noun 1. . "If TWT and OTE thought that the Republic of Armenia would not enforce its tax laws, they are sadly mistaken," said Sambat Ayvazyan, Minister of State Revenues. "We have a duty to collect all tax revenues for the betterment bet·ter·ment n. 1. An improvement over what has been the case: financial betterment. 2. Law An improvement beyond normal upkeep and repair that adds to the value of real property. of our country and its citizens and we will not depart from that duty," he continued. The lawsuit was filed in the Court of First Instance in Yerevan, the capital. The defendants will have an opportunity to respond to the government's claim. "There is no question that we will prevail and collect all taxes, fines and penalties owed," Ayvazyan concluded. The Republic of Armenia is being advised in the lawsuit by Manatt, Phelps & Phillips of Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , which the Armenian government retained for this matter. "This is an ordinary lawsuit for collection of back taxes by a sovereign government," said Harold P. Reichwald, a partner in Manatt, Phelps & Phillips, who consulted with government officials. "It is a reflection of the development of the Republic of Armenia and its commitment to a free market economy where most persons pay their taxes when due," he continued. "We hope that this step will encourage further foreign investment in this maturing country with wonderful opportunities," Reichwald added. |
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