Venezuela's
government put the pressure on Total oil to pay up taxes
SENIAT
Director's Jose Gregorio Vielma Mora
By
Elio Ohep
Petroleumworld
CARACAS
Petroleumworld.com
03 09 06
Venezuela, is demanding that the country's oil companies pay up
back taxes, that the SENIAT or tax office is claming the companies
owe them. On Wednesday, the Venezuelan tax office threatened the
venezuelan subsidiary of France's Total oil with an up to three
day closure if they not come up an pay up the taxes owe, José
Cedillo, Seniat’s director for special tax contributor,
told ABN news agency.
"If
on March 14, the company has not paid what it owes or at least
reached an agreement, its offices could be closed for up to three
days," Jose Cedillo, an official with the tax collection
agency, was quoted as saying by the official ABN agency.
However,
this does not imply the suspension of oil operation and production
activities.
SENIAT
said that Total owes 108 million dollars in back taxes, plus interest
and penalties, for the period covering 2001 to 2004.
Total
have said they are analyzing the back taxes bill and will have
an answer before the due date.
Venezuela
SENIAT last year lay a hefty tax bill upon all oil 22 foreign
oil companies operating in Venezuela. Most of them have negotiated
a settlement with the government under a 2001 law requiring 16.6
percent royalties and income taxes of 50 percent and other are
up to date with their taxes, other are on the way to pay.
Venezuela
unilaterally the royalty rate on the ventures to 16.67 percent
from 1 percent in October 2004, saying rising oil prices justified
the increase.
The
actions announced by SENIAT against Total and other oil companies
to collect back taxes from them, formed part of a campaign by
Venezuela's President Hugo Chavez's government to tighten control
over Venezuela's strategic oil sector.
-
Elio Ohep, editor@petroleumworld.com, 58 412 996 3730, Caracas.
Petroleumworld
News 03 08 06
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