VZCZCXRO7159
PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHMT
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DE RUEHCV #1444 2842214
ZNR UUUUU ZZH
P 102214Z OCT 08
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC PRIORITY 1978
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RHEHNSC/NSC WASHDC
RUMIAAA/HQ USSOUTHCOM MIAMI FL
RUCPDOC/DEPT OF COMMERCE
RUEATRS/DEPT OF TREASURY

UNCLAS CARACAS 001444 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PREL EINV PGOV VE
SUBJECT: VENEZUELA: BRV SHUTS MACDONALD'S FOR TWO DAYS 
 
¶1.  (SBU) The 115 MacDonald's restaurants in Venezuela were 
closed for 48 hours on October 9 following an inspection by 
the tax authority, Seniat.  According to a Seniat press 
release, Seniat fined as many as 16 of the MacDonald's 
restaurants 1,150 BsF ($535 at the official exchange rate) 
because of irregularities on the books on amounts owed in 
taxes. 
 
¶2.  (SBU)  When unable to reach a MacDonald's spokesperson 
the morning of October 10, Post Commercial Counselor reached 
out to the local franchise association.  An association 
contact informed him that Seniat had taken the action to make 
an example of an emblematic U.S. company.  When Post finally 
reached MacDonald's, however, a company spokesperson disputed 
this, noting that other companies (including Wendy's but also 
some Venezuelan food franchises) had been targeted at the 
same time. 
 
¶3.  (SBU)  The Seniat press release noted that during the 
Seniat inspection, more than 200 other government official 
were present, including representatives of Venezuela's 
consumer protection institute (Instituto para la Defensa de 
las Personas en el Acceso a los Bienes y Servicios - 
INDEPABIS); the Labor Ministry; and two Labor Ministry 
Institutes, including the Institute for Training and 
Socialist Education (Instituto de Capacitacion y Educacion 
Socialist - INCES) and the National Institute for Prevention, 
Health and Labor Security (Instituto de Prevencion, Salud y 
Seguridad Laborales - Inpsasel).  MacDonald's underlined that 
the presence of so many government entities was unusual. 
 
¶4.  (SBU)  MacDonald's informed the Commercial Counselor that 
it plans to meet with Seniat on October 13 to discuss the 
Seniat regulations.  According to MacDonald's, Seniat 
regulations on bookkeeping are ambiguous and leave much to 
the discretion of the officials performing the audit. 
MacDonald's plans to ask Seniat to show it the exact format 
in which books should be maintained.  MacDonald's can re-open 
at 2:00 PM on Saturday, October 11. 
CAULFIELD