SECURITIES PROSPECTUS

17.2. Liability for Maintaining Tax Accounting Records and Preparing TaxReports17.2.1. Liability for the correct calculation of taxes and dues shall be borne by theChief Accountant of the Company, heading the Department for Business and TaxAccounting.17.2.2. To ensure correct and complete formation of tax bases for all taxes and dues,the functions of the Company shall submit the necessary information within the timelimits established by the workflow schedule in the forms and scope approved bycertain internal directive documents.17.3. Budget Settlements17.3.1. The accounting records of settlements for taxes and dues shall be maintainedin accounts on an accrual basis for each particular tax and due by budget level(federal, budget of the constituent entity of the Russian Federation, local budget) andtype of debt (principal amount of tax or levy in arrears, penalties, fines).17.4. Income Tax AccountingThe Company shall apply a unified organization system, methods and forms oftax accounting for income tax purposes under Chapter 25 of the Tax Code of theRussian Federation and this accounting policy for tax purposes.The Company shall calculate its tax base for each reporting (tax) period basedon tax reporting data if Chapter 25 of the Tax Code of the Russian Federationspecifies any procedure for grouping and recording assets and business transactionsfor tax purposes other than the procedure for grouping and recording in theaccounting records.The Company shall permit the revision and expansion of principles, procedureand forms of tax accounting set forth in this accounting policy for tax purposes duringthe tax period through the inclusion of additional analytical data, registers andprinciples of generalization of information, which is expected to contribute to morecorrect disclosure of the tax base formation.Source documents for tax accounting purposes shall be source financialaccounting documents transformed into tax ledgers based on which the tax base iscalculated.232