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Venezuela Shuts Down Coca-Cola Operations
Associated Press
February 16, 2005
CARACAS, Venezuela - Venezuela's tax agency ordered a 48-hour closing
of Coca-Cola Co.'s bottling plants and distribution centers across
the country Tuesday as a penalty for allegedly failing to follow tax
rules.
Tax officials said they would close the U.S. company's four bottling
units and 34 distribution centers in Venezuela controlled by Coca-Cola
Femsa S.A.
The company had failed to issue receipts for its sales and keep its
books in order, said Selma Rendon, a top tax agency official.
"In this process they haven't been as forthcoming," as expected, she
said.
The Coca-Cola Co. in Atlanta had no comment, referring questions to
Femsa. "They're a bottler separate from us," spokesman Ben Deutsch
said.
Femsa officials could not be immediately reached for comment.
Coca-Cola's closing is the latest example of the Venezuelan government's
aggressive "zero evasion" campaign that has targeted both local and
international companies.
On Feb. 5, tax officials also ordered all McDonald's restaurants in
the South American country closed for three days, citing similar tax
violations.
Other businesses that have been temporarily closed by the tax bureau
include Lucent Technologies, supermarkets and mall shops.
The Venezuelan government managed to collect nearly $13 billion in
taxes last year, a 50 percent increase from the previous year.
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