Ecopetrol Announces State Council Ruling on Income Tax for Fiscal Year 1996
April 16, 2009 at 10:40 AM EDT
BOGOTA, April 16 /PRNewswire-FirstCall/ -- Ecopetrol S.A. (NYSE: EC; BVC: ECOPETROL) ("Ecopetrol" or the "Company") announces that in a March 13, 2009 ruling (as notified through an edict dated as of April 13, 2009) the State Council, on appeal, partially accepted the Company's claims by modifying the Official Liquidation of the National Directorate of Taxes and Customs of Colombia ("DIAN"). DIAN had requested an additional payment of COP$27,033,451,000 corresponding to the income tax return for the 1996 fiscal year and the State Council modified this amount to COP$1,888,365,000 plus interest in arrears. The judicial order accepted Ecopetrol's arguments that some of the income was exempted because it related to sales of asphalt and that some of the sanctions should be eliminated because they arose due to inaccuracy resulting from the application of differing criteria. The judicial order also did not recognize the approach taken by DIAN with respect to the deductibility on losses associated with the Company's sales portfolio.
Ecopetrol is Colombia's largest integrated oil company and is among the top 40 oil companies in the world and the four largest oil companies in Latin America. Besides Colombia, where it accounts for 60% of total production, the Company is involved in exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol has the principal refinery in Colombia, most of the network of oil and multiple purpose pipelines in the country, and it is considerably increasing its participation in biofuels.
This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.
Contact us for any additional information: Investor Relations Alejandro Giraldo Phone: +571-234-5190 Email: email@example.com Media Relations (Colombia) Mauricio Tellez Phone: + 571-2345377 Fax: +571-2344480 Email: firstname.lastname@example.org Website: www.ecopetrol.com.co
SOURCE Ecopetrol S.A.