Venezuela shuts down IBM, Microsoft, Honda

CARACAS, Venezuela (AP) - Venezuela's tax agency said that it had imposed fines and ordered the temporary closure of several foreign companies, including International Business Machines, due to tax irregularities.

The Seniat agency ordered the 48-hour shutdown of U.S. computer company IBM Corp.'s office in Caracas, as well as auto parts company Bosch Rexroth Corp., for bookkeeping irregularities related to the value added tax, the agency said in a statement.

Others such as Microsoft Corp., Honda Motor Co., Nokia, Ericsson, Siemens and Colombina SA will face closures ranging from 24 to 48 hours, as well as fines, it said.

The reasons for the punitive actions against the latter were 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 pay taxes in their home countries but often skip what they owe in Venezuela.

Under Chavez, Seniat has told foreign oil companies they owe more than $3 billion in unpaid taxes 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 those claims.

AP-ES-10-06-05 0024EDT