IBM fined £190 by Venezuelan authorities

By Simon Aughton

Posted on 6 Oct 2005 at 15:11

Venezuela's authorities have ordered the temporary closure of several foreign companies due to tax 'irregularities'

The country's Seniat tax agency ordered a 48-hour shutdown of IBM's Caracas office for what it described as 'bookkeeping irregularities related to value added tax. The company was also fined 725,000 Bolivares (£190).

Other tech firms also face 24- to 48-hour closures, including Microsoft, Nokia, Ericsson and Siemens.

The Venezuelan government has reaped record tax revenues as a result of Seniat's 'zero evasion' policy. President Hugo Chavez has targeted foreign firms for failing to pay local taxes and told oil companies that unless they paid the $3bn he says that they owe in back taxes they will no longer be allowed to operate in the oil-rich country.

IBM declined to comment.