PDVSA sues the United States and requests a refund of US $ 640 M in taxes

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PDVSA sues the United States and requests a refund of US $ 640 M in taxes







© Bloomberg



PDV Holding Inc., subsidiary of the national oil company of Venezuela PDVSA, demand to United States for refund of US $ 640 million. The company claims it incorrectly calculated tax credits and overpaid from 2005 to 2011, filed the lawsuit in a federal court in Houston Thursday night, he recalculated and requested a refund. Says that the US Internal Revenue Service (IRS) rejected the application.

PDV, which in turn indirectly owns Petróleos de Venezuela’s US refining and marketing unit, Citgo Petroleum Corp., said other energy companies have filed requests for similar tax refund in various jurisdictions and there have been mixed results. He cited Exxon Mobil Corp., ETC Sunoco Holdings and Delek US Holdings.

The IRS did not immediately respond to an email seeking comment on the lawsuit.

PDV Holding Co. claims it incorrectly calculated tax credits and overpaid from 2005 to 2011

Petróleos de Venezuela, or PDVSA, faces legal challenges on multiple fronts. There is a line of creditors seeking judicial permission to seize Citgo assets in order to satisfy hundreds of millions of dollars in unpaid debt. Venezuela has defaulted on the payment of $ 60 billion of debt PDVSA in the last three years in the midst of an economic collapse and US sanctions.

In addition, US prosecutors have indicted more than 20 former PDVSA executives, contractors or suppliers in a broad scheme of corruption that would have diverted more than US $ 1 billion in national oil revenues to Venezuelan politicians and related individuals.

PDV filed the lawsuit at a time when Citgo is affected by low demand for its fuels due to economic impact of the pandemic of coronavirus. At the same time, Citgo’s Lake Charles refinery in Louisiana suffered damage from Hurricane Delta this month and is struggling to resume operations.

The case is: PDV Holding Inc. v. US, 20-3621, US District Court, Southern District of Texas (Houston).

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