Chinese oil firm asks Venezuela to review demand for extra taxes

China National Petroleum Corp. (CNPC), a Chinese oil firm operating in Venezuela, will ask Venezuelan authorities to review their demand for additional tax payments for last year, CNPC Vice President Zhang Jingling said on Friday.

CNPC America Ltd. Venezuela does not owe 2005 taxes, as it has paid them in line with the Venezuelan law, Zhang said.

On Wednesday, Venezuela's Integrated National Tax and Customs Service (Seniat) said the firm owed 23,510 million bolivars (10.9 million U.S. dollars) in taxes for 2005.

"Seniat has changed the rules by which it taxes in an abrupt and unilateral way," which failed to truthfully reflect the ratio of CNPC's costs and earnings, Zhang said, adding that the firm would not accept the new demand.

The company will seek a review before Sept. 20, she added.

Under the Venezuelan law, private companies can ask state bodies and tribunals to review the tax authority's decisions within 25 working days after receiving a tax demand.

CNPC America Ltd. operates two oil fields and the Orimulsion project that produces synthetic crude oil in Venezuela, the world's fifth largest oil producer.

Seniat also sent extra tax bills to four other oil companies in the country on Wednesday.

Source: Xinhua