Venezuela forces Shell to pay back taxes- Ireland provides security

international | consumer issues | news report Tuesday April 10, 2007 12:28 by NN

over thirteen million dollars owed

Venezuela has an interesting relationship with the energy giant Shell. They actually force them to pay taxes, and when they submit estimates which the govt doesn't believe, they audit them and present them with a bill. Today they told Shell to pay back over thirteen million dollars that the company was trying to weasel out of from 2005.

The Irish government, of course, has a more compliant attitude to the big energy companies...

Chavez, Ahern, Bachelet, Merkel

Shell pays $13.7 mln in back taxes in Venezuela

CARACAS
April 10 2007

Royal Dutch Shell's Venezuelan subsidiary had to pay the Venezuelan government $13.7 million in back taxes levied on operations in 2005, the nation's Seniat tax authority said on Monday.

The Seniat said it received the payment after an audit that determined the company had not paid the correct income tax for 2005.

The agency said it objected to Shell Venezuela's write-down of interest payments on a loan it took out from its corporate headquarters, insisting the interest rate on the loan had been set above market rates.

Shell is a minority partner with state oil company PDVSA in the Urdaneta Oeste field in Western Venezuela.

Petroleumworld 04 09 07