Venezuela hits Shell with $17.7 million tax tab

26 Nov, 2006

Venezuela has hit Royal Dutch Shell with a $17.7 million tax tab, the nation's Seniat tax authority said Friday. The Seniat said in a statement that the charge related to "transfer prices," part of a broad investigation into income tax payments. Shell was not immediately available to confirm or explain the bill.
Shell is partnered with state oil company PDVSA in a joint venture that operates the Urdaneta Oeste crude field in western Venezuela. Venezuela, the fourth-largest exporter of oil to the United States, since last year has levied more than $700 million in taxes on companies operating the nation's oilfields. Some companies receiving the tax assessments have negotiated lower payments.

Read Comments