Posted on 05/09/2005 4:05:29 AM PDT by Flavius
CARACAS, Venezuela (AP) - President Hugo Chavez said Sunday that foreign oil companies operating in Venezuela must pay taxes he insists they owe, or else leave the country.
"The companies must pay what they owe,'' Chavez said during his Sunday television and radio show.
"If they don't pay, they must leave.''
Chavez said that many private oil companies have been evading taxes for years, and they must be charged retroactively with interest on any debts. Officials have said that many declare losses to avoid paying income tax.
"It's not possible that an oil company can come here, pay 1 percent royalty and not pay income tax, and still declare losses,'' he said.
According to Venezuelan law, oil companies must pay a 30 percent royalty, but companies producing heavy crude - which is expensive to produce - were allowed to pay 1 percent royalty until last year, when the government raised it to 16 percent.
"All oil production gives earnings,'' he said.
The speech by Chavez came one day after National Assembly president Nicolas Maduro said lawmakers will investigate international oil companies accused of evading taxes and other charges.
Maduro, a pro-government lawmaker, was quoted by the state-run Bolivarian News Agency as saying lawmakers expect to find evidence of tax evasion, royalty debts, production over the limit set by the government and irreversible damage to some wells.
He said investigators would question top officials of the state-run oil company, Petroleos de Venezuela, who negotiated agreements with foreign companies after Venezuela allowed them to enter its oil industry in the mid 1990s.
During that time, 32 operating agreements were signed with companies including ChevronTexaco, British Petroleum, Total, Petrobras, Repsol YPF, Royal Dutch Shell and the China National Petroleum Corp.
Oil Minister Rafael Ramirez estimated last month that many of these companies have evaded taxes totaling US$2 billion (euro1.54 billion).
Venezuela is the world's fifth oil exporter and government officials say it produces over 3 million barrels a day.
But analysts and international agencies say the amount is closer to 2.6 million. - AP
Latest business news from AP-Wire
Related articles:
http://www.venezuelatoday.net/gustavocoronel.html
and
http://daniel-venezuela.blogspot.com/2005/05/ballot-shipwrecked-on-shores-of-cuba.html
Right on Chavez! After all,confiscation and repudiation made Zimbabwe the economic powerhouse it is today!
And they should take their equipment with them before cementing in their wells.
"And they should take their equipment with them before cementing in their wells."
I sure the equipment and the wells will be confiscated to pay their "debts".
Hopefully this idiot will destroy his country's oil industry and Venezuela can return to the jungle paradise from whence it came.
He sure doesn't know how to play ball does he. Demands will get him everywhere yet no where.
And when did this "law" go in effect?
It's always nice to know what your going to find before you go looking for it....
FYI..according to C-span's TV schedule, Sen Cornyn will be holdign a live presser at 11 am on C-span 1 to talk about judicial nominations...I should be out of a meeting by then..I'll start a live thread..later..I think Cornyn has been designated to put down a few markers..I think Frist pulls the trigger this week..
The companies should leave and take their equipment with them.
Does anyone think that any amount of "taxes" will satisfy Chavez. No..he wants to take over the companies...Communism at its finest. Russia is doing the same thing. Taking over the oil companies. Fidel will die soon..and Cuba will change overnight...Chavez will be alone.....
As I recall this was the same basic strategy employed by Allende in Chile.
How much will Venezuela collect in taxes when they produce zero barrels of oil per day?
It's not about collecting taxes; it's about hurting the US economy.
How much do you want to bet they will be the only foreign oil company operating in Venezuela by the end of the decade? ;)
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