Venezuela Warns Total on Tax Payment

Posted 16 March 2006 @ 05:01 am EET     Print     Reprint     E-Mail     Comments

CARACAS, Venezuela (AP) - Venezuela's tax authority warned the French oil firm Total SA that it could have its administrative offices shut as soon as Friday if it fails to pay a US$107 million (euro89 million) tax bill.

Total is one of 22 oil firms that the tax agency has accused of misreading the nation's tax code and inflating tax deductions.

The tax agency's statement came a day after it said Total had agreed to pay part of its overdue tax bill this week. The tax agency has previously threatened the French oil company with fines and possible property seizures if it doesn't settle its tax bill promptly.

Total officials were not immediately available for comment.

The tax agency temporarily closed the commercial offices of Royal Dutch Shell Plc. last year for not paying its tax bill on time.

Shell managed to negotiate a reduction in its retroactive tax bill after months of talks. It was fined US$130 million (euro108 million) in early 2005, buy wound up paying only 10 percent of the original bill.

Venezuelan tax authorities say private and foreign state oil firms owe a total of nearly US$800 million (euro665 million) in unpaid taxes from 2001 to 2004.

The tax agency also said that small oil firm Hocol, owned by Knightsbridge Petroleum Ltd., was presented with a retroactive tax bill for US$7.8 million (euro6.5 million) as part of the same oil industry audit.