In July 2005, the SENIAT
issued a preliminary tax assessment to HVSCA of 184 billion Bolivars, or approximately $85 million, related to 2001 through 2004 of which HVSCA paid $5.
The charge was based on a negotiated agreement between HVCA and the SENIAT as announced by Jose Joaquin Cedillo, Capital Regional Manager of Special Taxes, of the SENIAT on July 28th and confirmed by a further August 29th SENIAT announcement.
Edmiston, said, "We are extremely disappointed that the SENIAT did not honor the agreement reached in July after several months of negotiation.
The SENIAT may assess interest and a 10 percent penalty on the additional tax payment.
The SENIAT could assess additional penalties on the remaining assessed, but unpaid amounts.
Hill continued, "As a result of several unilateral actions taken by Ministry of Energy and Petroleum (MEP), PDVSA and the SENIAT, we have given formal notice to Venezuelan government officials of an investment dispute under Venezuelan law and bilateral investment treaties entered into by the government of Venezuela.
In addition, the SENIAT imposed penalties equal to 10 percent of the preliminary tax assessment for a total claim of 202 billion Bolivars, or approximately $94 million.
In addition, the SENIAT
imposed penalties equal to 10 percent of the preliminary tax assessment claim for a total claim of 202 billion Bolivars, or approximately $94 million.
also announced it will audit companies with operating service agreements.