4.  In 1997 the officers of the Vilnius City tax inspectorate investigated the applicant's declaration and payment of taxes. On 31 October 1997 they drew up a report in which the applicant was ordered to pay a sum of 906,566 Lithuanian litai (LTL; 262,444 euros (EUR)). The sum was comprised of LTL 457,139 (EUR 130,155) in tax arrears and interests, and LTL 449,427 (EUR 132,289) in fines. 5.  The applicant company contested the tax authorities' decisions before the Commission on Tax Disputes, a pre-trial tax-dispute settlement institution, which on 27 July 1999 partly granted its appeal and lowered the amount of fine to be paid to LTL 129,986 (EUR 37,644). 6.  On 19 August 1999 the tax authorities decided to seize some of the applicant company's property to secure the payment of tax arrears and penalties. The seizure remained in force until 28 September 2004. 7.  On 15 June 2001 the Vilnius Regional Administrative Court partly granted the applicant company's appeal. 8.  On 13 September 2001 the Supreme Administrative Court annulled the lower court's decision. It ordered the State tax inspectorate to freshly examine the tax dispute. It was established that the company, in breach of accounting rules, had failed to keep proper book-keeping records and therefore the tax authorities could not properly establish the tax base directly relying on the company's documents. The court concluded that in assessing the tax arrears the authorities could have recourse to the indirect method for establishing the tax base (Mokesčio bazės netiesioginio nustatymo metodas), when as a source of information the tax authorities rely on the financial documents of other companies, that the applicant company had business transactions with. The indirect method for establishing the tax base came into force by the Government's regulation of 3 September 1998. 9.  Between October 2001 and March 2004 the tax authorities conducted several new investigations of the company's tax payment records. Having had recourse to the indirect method for establishing the tax base, on 24 March 2004 the inspectors adopted a new decision as to the tax arrears and penalties which the applicant company was liable to pay, including those for the accounting years 1994-97. 10.  On 10 February 2005 the Commission on Tax Disputes upheld the tax authorities' decision. 11.  On 19 May 2005 the Vilnius Regional Administrative Court dismissed the applicant company's appeal as not founded. 12.  On 4 October 2005 the Supreme Administrative Court upheld the lower court's decision.