"We are working on an appeal against the charges, preparing our arguments and documents," Ilya Novokhatsky said.
Eldorado's president said the company was facing 8 billion rubles ($333 million) in back tax claims. However, a former Eldorado top manager said the company's tax arrears stood at 15 billion rubles (about $625 million), according to the Kommersant daily.
Igor Yakovlev, the company's president and key shareholder, said as quoted by Kommersant that the retailer could sell some of its assets to pay off the arrears if it lost the case. Yakovlev also blamed tax arrears on goods suppliers working with Eldorado at the time.
Eldorado's total debt stands at $1 billion. Its turnover last year was $6 billion.
Tax authorities launched checks of the company, which runs a chain of stores in Russia and Eastern Europe, in 2006. Authorities have not filed formal charges against the retailer so far, but have provided it with their findings following their checks. They are expected to make their final decision in April. Eldorado has two weeks to file an appeal.
Kremlin critics claim that back tax charges are often used by the authorities as a 'weapon' against businesses. The former owner of the now-bankrupt Yukos oil company, Mikhail Khodorkovsky, has claimed that back-tax charges were brought against the company as a result of his funding of the country's pro-Western opposition. Khodorkovsky is currently serving eight years in prison in Siberia on charges including tax evasion.
