London Evening Standard: Venezuela hits Shell with £74m bill for back tax
“The Venezuelan authorities said Shell now faces a 15-day deadline for handing over the funds said to be owed. If it pays up within that period, interest on the sum allegedly owed will be charged at 10%. If not, the rate will rise to 250%.”
Posted Sunday 17 July 2005
Published by The London Evening Standard on Friday 15 JULY 2005
HARD on the heels of news that Royal Dutch Shell faces a massive cost overrun on its flagship Sakhalin-2 project in Russia, the company has been caught up in a tax wrangle with the Venezuelan authorities, writes Jake Lloyd-Smith.
The South American country’s tax authority has said the energy giant owes $131 million (£74.5 million) in back tax for the years from 2001 to 2004.
Shell reportedly rebuffed the claim, saying it had met all its Venezuelan tax obligations.