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. Last Updated: 07/27/2016

Zadornov, Boos Disagree Over Tax Take

Russian Finance Minister Mikhail Zadornov on Thursday clashed with tax chief Georgy Boos, saying tax revenue in the first nine months was lower than announced.

Zadornov said at a Cabinet meeting that the level of payments of "live money" - actual money as opposed to barter payment - had fallen compared with last year. Boos said they were similar.

"There has been a dangerous tendency of falling volumes of tax payments," Zadornov said at the regular government meeting, where tax collection topped the agenda.

In 1997, live cash was 65 percent of total returns. But in the third quarter of 1998, the level fell to 50 percent and is expected to fall to 47 percent in the fourth quarter, he said.

Zadornov was contradicting earlier statements made by Boos, who said tax collection was at the same rate this year as 1997.

"Ruble for ruble, the amount is exactly the same as it was a year ago," Boos said.

In the first nine months of 1998, the tax service had collected 338 billion rubles ($22.2 billion), of which 111 billion rubles was cash. He said this was similar to last year.

Zadornov stated that tax arrears should be taken from the foreign currency accounts of nonpayers and that there should not be any pardon for arrears. He presented the example of the Russian republics Tatarstan and Bashkortostan that owe 3.5 billion rubles.

Boos said the tax service should control foreign exchange and have special tax posts at firms that are big taxpayers.