News
News
10/10/2005
01:53 PM
Connect Directly
RSS
E-Mail
50%
50%

Venezuela Government Closes Some U.S. Tech Firms

The move appears to be part of a massive tax audit now underway.

The Venezuelan government temporary closed offices of some large U.S. companies -- including IBM, Microsoft and Nokia -- last week.

Though several media reports claimed the government announced the move as part of its zero tolerance for tax evasion, a representative from Nokia said Monday that it is business as usual.

"When the Venezuelan tax authority does audits, this is a very common occurrence," Keith Nowak, media relations manager for Nokia said in a telephone interview. "It's simply the way they do it. If they're going to audit you, part of the procedure is you have to shut down for 24 hours."

Nokia and Microsoft have reopened its offices, but IBM's corporate offices and Venezuelan contacts had not returned calls or e-mails Monday. A Microsoft spokesperson said the closure was routine and that Microsoft has operated in complicance with local tax duties under the law.

One observer said it is unusual for several large U.S. companies to be audited at the same time. Media reports said the recent closures appear to be part of a larger effort on the part of President Hugo Chavez' plan to crack down on businesses.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - July 22, 2014
Sophisticated attacks demand real-time risk management and continuous monitoring. Here's how federal agencies are meeting that challenge.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.