Venezuela Fines and Shuts Nokia, Siemens and Ericsson Offices"

CARACAS -(Dow Jones)- Venezuela's tax agency Seniat said Wednesday it imposed fines and ordered the temporary closing of various foreign companies due to tax irregularities.

The agency ordered the 48-hour shutdown of U.S. computer company International Business Machines (IBM), IBM in Caracas, as well as autoparts company Bosch Rexroth Corp. (505366.BY), for bookkeeping irregularities related to the value added tax, the agency said in a statement.

Others, such as Microsoft (MSFT), Honda Motor Co. (7267.TO), Nokia (NOK), Ericsson (ERICY), Siemens (SI) and Colombina SA (COLOMBIN) will face closures ranging from 24 to 48 hours, as well as fines.

The reasons for punitive actions against these last few was unclear.

Company officials could not immediately be reached for comment.

Seniat officials have pursued an aggressive "zero evasion" campaign that has helped the government of President Hugo Chavez reach new tax collection records.

The president has said that all companies must pay their taxes, particularly foreign ones that do pay taxes in their home countries but many times skip what they owe in Venezuela.

Under his watch the Seniat is pursuing foreign oil companies with an unpaid tax bill of more than $3 billion going back several years.

The government has said oil companies won't be able to continue operating in the country if they refuse to pay what they owe.

-By Raul Gallegos, Dow Jones Newswires; 58-414-288-7461; raul.gallegos@dowjones.com;

(END) Dow Jones Newswires"

Posted to the site on 6th October 2005