Ven TV mogul outraged by demand for taxes

["Fred Feldman" <ffeldman@xxxxxxxxxxxxxxxx>]

Posted: Friday, May 30, 2003
By: David Coleman


GLOBOVISION goes ballistic after bailiffs turn up demanding payment of
taxes

http://www.vheadline.com/readnews.asp?id=7735

Venezuela's politically opposition-loaded 24/7 TV news channel,
GLOBOVISION has gone ballistic after bailiffs turned up at the studios
demanding payment of taxes running into millions of bolivares.
Accompanied by a court official, telecommunications regulatory
authority CONATEL lawyers were immediately subjected to abuse by
broadcast legal staffers who claimed they'd been given 25 days grace
from May 16 to present an appeal to the Infrastructure (MINFRA)
Ministry.  Globovision lawyer Moises Vallenilla claims government
authorities are "attempting to intimidate news channel employees" by
raising the taxation demand in the first place.

Insiders say that Globovision is attempting to thwart tax collectors
after joining a widely-broadcast call to refuse to pay taxes as a
direct result of the political opposition's failure to overthrow the
Chavez Frias government in a 2-month work stoppage that attempted to
cripple the nation's economy.  Valenilla, however, says that
Globovision does not owe as much as one cent until all the lengthy
legal processes have been completed ... and it's his declared intent
to string things out as long as the legal system can be manipulated in
Globovision's favor.

CONATEL executives, however, respond saying that they are obliged in
law to supervise and ensure that all legal requirements are met by the
TV broadcaster and that they would be failing in their duty to the
nation if they did not pursue payment of taxes as required in law.

Valenilla, for his part, says "the unusual about this situation is
that they are practically saying to us, either you accept this
notification signed by Conatel chief Jesse Chacon or we will proceed
using other means without explaining what they mean by the threat!"

"What we do not understand is how CONATEL is seeking to be paid,
urging Globovision to pay quantities of money which are not yet
defined and which are still under discussion ... this is simply a new
attitude of aggression on the part of Conatel."

Globovision director general Alberto Federico Ravell says it is
"exceedingly strange" that Conatel "should descend out of the blue on
us just the same day as the government and the opposition is signing a
peace agreement."  He adds that he views the tax-gathering procedure
as being "a completely illegitimate and illegal attack on the TV
station ... if this is the beginning of a peace accord, we are on the
wrong road."

CONATEL's Jesse Chacon insists that Globovision must pay proper taxes
in accordance with the Organic Tax Code as established in the 1999
Constitution.  Globovision counters that the law appears to allow them
a period of grace until June 20, although they have already stated
publicly that they'll take it all the way to the Supreme Tribunal of
Justice (TSJ) is they have to...

"What we have here is that Globovision is attempting to refuse the
service of proper court documents related to the tax debt and have
blocked the bailiffs and court officials from entering the building
... it is a completely normal legal procedure that's applied to any
person or business that is considered to be indebted to the IRS/Seniat
... there can be no exceptions."

"The law stipulates that Globovision must pay what is due to the
taxman and then, if they feel unjustly treated, they can launch any
appeals procedure direct to the IRS/Seniat or, failing agreement, they
may resort to the courts to settle the matter ... "the point is that
they must pay the taxes and any fines imposed for their failure to pay
on time!  It's a simple matter that they pay up or we will be forced
to take them to court just like any other tax evader."

"Conatel lawyers have ratified the institution's position and notified
Globovision, indicating the legal mechanism they must follow if they
are not in agreement ... but they must pay their taxes, it's as simple
as that!"