Moscow tax police raid Bates Saatchi & Saatchi

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LONDON -- Bates Europe has confirmed that armed tax police have raided the Moscow office of Bates Saatchi & Saatchi. Bates Europe spokesman Alex Sandberg would only comment: "We're cooperating with the authorities in Moscow and attempting to resolve the situation."

Cordiant-owned networks Bates and Saatchi & Saatchi operate a combined network in central and eastern Europe. The four-year-old Moscow office employs 85 staff and encompasses Zenith media and Action Marketing, a below- the-line subsidiary. The office has 22 local clients and internatinal clients include BAT (British-American Tobacco), Tchibo coffee, Procter & Gamble, Cadbury's and Johnson & Johnson.

There are concerns that other western companies could become targets of tax inspectors. The International Monetary Fund recently delayed a loan payment to Russia because the country is not generating enough revenues from tax collections.

Copyright November 1996, Crain Communications Inc.

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