BUEDELSDORF, Germany, Dec 16 (AFP) - German telephone operator MobilCom said Thursday it was taking legal action against the German government to reclaim more than one billion euros in tax paid as part of the acquisition of its licence to operate third-generation mobile phone networks in 2000.
MobilCom acquired a licence to operate a UMTS (Universal Mobile Telecommunications System) mobile phone network in Germany for 8.43 billion euros (11.3 billion dollars) in 2000.
But "neither the document confirming the contract nor the payment demand declared the amount of turnover tax liability," MobilCom complained in a statement.
Turnover tax is the equivalent of value-added tax for companies.
MobilCom had already requested a corrected invoice in 2003. But the German telecoms regulator, RegTP, had refused that request.
"We take the view, which is supported by an expert opinion, that the RegTP acted in this case as a business enterprise and should have shown turnover tax pursuant to relevant German law," MobilCom said.
If its claim were successful, "this would involve refund of turnover tax totalling 1.16 billion euros," of which 90 percent would be payable to MobilCom's major shareholder, France Telecom, the statement said.
"After careful consideration of the chances and risks we have decided to institute legal proceedings," chairman Thorsten Grenz said.
12/16/2004 15:24 GMT - AFP