Venezuela hits Mitsubishi Motors with $1 mln tax
CARACAS Aug 23 (Reuters) - Venezuela's tax authority said on Thursday it hit Mitsubishi Motors Corp (7211.T) with a $1.02 million tax tab following an income tax audit of filings for the years 2003 and 2004 that focused on transfer pricing. The Seniat tax authority said in a statement the company, which assembles vehicles in Venezuela, will have 15 days to make the payment or face a fine of 10 percent of the total amount owed.
Seniat officials have told Reuters the transfer pricing audits often focus on loans between Venezuelan subsidiaries and their foreign headquarters made at above market interest rates with the intent of lowering tax payments in Venezuela.
The government of Venezuelan President Hugo Chavez has repeatedly served back tax bills to companies in the OPEC nation and has collected close to $1 billion in back taxes from energy companies operating in the country's oil fields.
(Reporting by Brian Ellsworth)
((Editing by Andre Grenon; Caracas newsroom, Reuters messaging:brian.ellsworth.reuters.com@reuters.net, email: brian.ellsworth@reuters.com +58-212-277-2655)) Keywords: VENEZUELA MITSUBISHI/TAX
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