Shell tax row heats up (Venezuela)

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Venezuelan tax authorities have closed a Royal Dutch Shell office for 48 hours and asked for an injunction on some of the oil giant's assets in a multimillion-dollar tax row.

The tax dispute centres on a $131m (£74m) bill for back taxes between 2001 and 2004 that was presented to Shell last month. Seniat, Venezuela's tax authority, said it had put a hold on Shell goods worth $131m and shut its office in Lake Maracaibo.

The oil company is challenging the demand. A statement 'reiterated' that Shell Venezuela had paid 'all taxes mandated by the law and complies with Venezuelan law'.

Seniat said that under the injunction, Shell would be prevented from exporting or selling the goods earmarked under the injunction as collateral in the tax dispute. However, it did add that the oil giant would still be able to use the equipment.

AccountancyAge