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Venezuela's says oil corporations have yeilded to tax demands

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  • stuartmunckton
    From VHeadline Published: Tuesday, July 05, 2005 Bylined to: David Coleman Venezuela s IRS/Seniat says foreign oil operators have yielded to tax demands
    Message 1 of 1 , Jul 5, 2005
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      From VHeadline

      Published: Tuesday, July 05, 2005
      Bylined to: David Coleman

      Venezuela's IRS/Seniat says foreign oil operators have yielded to tax
      demands

      Venezuela's IRS/Seniat tax agency says that seven foreign oil
      operators have yielded to demands from the Venezuelan government that
      they should pay outstanding tax bills after 22 oil companies were told
      the tax authorities would take action to enforce temporary shut-down
      orders on those who failed to maintain tax payments on schedule.

      IRS/Seniat official Jose Joaquin Cedillo did not give details of which
      companies had indicated their compliance with Venezuela's national tax
      structure but it is known that the companies involved in the recent
      taxation debacle include ChevronTexaco, British Petroleum, Repsol,
      Total, PetroBras and Royal Dutch/Shell.

      The Venezuelan government claimed that some companies had persistently
      failed to pay some US$2 billion that they owe under a 2001 law which
      requiring 16.6% extraction royalties and local income taxes at 50%.

      The tax-defaulting companies claim that they signed agreements with
      the Venezuelan government under the presidency of Dr. Rafael Caldera
      (1993-1998) which required royalties of only 1% and income taxes at
      36%. However, President Hugo Chavez Frias says the agreements were
      the result of suspiciously corrupt 'arrangements' between the then
      government and the oil companies and that the foreign oil operators
      have the simple choice of paying up what they owe under the law or to
      get out of Venezuela ... he had already told them "if you don't
      comply, we don't need you, here."
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