Venezuela govt ready to close oil cos that evaded taxes till they pay

[Robbien]

Forbes

CARACAS (AFX) - The Venezuelan government is ready to shut the operations of foreign oil companies that have evaded taxes until they pay what they owe, said the head of the Seniat tax office, Jose Vielma Mora. Local media quoted Vielma as saying: 'I don't want oil companies to leave, but we do want them to pay.'

According to Vielma, three oil companies failed to pay 80 pct of the income tax.

He did not name these companies, which will have to pay about 286.5 mln usd according to his estimates.

The Venezuelan government claims that private oil companies, which operate under special contracts signed with state-owned oil firm PDVSA, under-reported their income and posted fictitious losses.

Foreign companies operating in Venezuela include Chevron Corp, BP PLC, Repsol YPF SA, Total SA, Petroleo Brasileiro SA, Royal Dutch/Shell Group and China's national oil corporation.

http://www.forbes.com/markets/feeds/afx/2005/06/01/afx2070181.html

[htuttle]

1. These oil companies wouldn't think twice about bribing a dictator...

...in exchange for oil rights, yet if they are asked to pay taxes of an equivalent amount, they whine and balk and cheat.

Mean-spirited corporate bastards.

[denverbill]

2. Ha. Oil companies posting 'losses'. That would be interesting.

But knowing the state of accounting and tax law in this country, they probably were operating at a 'loss' even though they made hundreds of billions.

[Robbien]

3. What's even more strange is that Venezuela reimburses oil companies

for their operating costs, even food, clothing and housing.

So Exxon claims a loss in Venezuela but once they are in the US they declare billions in profits each month from the same Venezuela operations.

Since the Anti-Chavez people were in control of Venezuelan oil up until the last election it looks as if this arrangement was okay with them.

[amandabeech]

4. Chavez has learned from Putin. n/t

[MrPrax]

5. What a Novel Idea?

Say, if oil companies dealing with windfall profits in a fixed market demand had to pay taxes, then the rest of our taxes could be lowered and then all that money in our pockets could be spent on goods and services, healthcare, schools, public goods...

Oh damn...I sound like a socialist.

[Robbien]

6. Since there are 21 different oil companies operating in Venezuela

and this article states only three have not paid, wonder if the other 18 paid their fair share. Also wonder if receipt of these monies has anything to do with the new big infrastructure program Chavez announced yesterday.