March 6 (Bloomberg) -- Coca-Cola Femsa SA's operations in Venezuela will be forced to close for three days as the government penalizes Latin America's biggest soft-drink bottler for allegedly breaking tax rules.

Venezuela's National Tax service shut Coca-Cola plants and administrative offices, agency spokesman Wilmer Silva said today in a telephone interview from Caracas. Mexico City-based Coca- Cola Femsa said in a statement that the closure will be for two days and will affect the company's headquarters and distribution centers, not its plants.

The agency, known as Seniat, is considered the most efficient arm of President Hugo Chavez's government after collecting record tax revenue by cracking down on evasion and increasing levies on foreign oil companies. Analysts say the agency is applying tax laws selectively to intimidate companies or keep them compromised by the state.

``This has nothing to do with legal principle, it's simply `We're going to take advantage of the political situation and exert pressure in this direction,''' Manuel Malaver, a political analyst and columnist for Caracas daily newspaper El Mundo, said in a phone interview.

Silva declined to comment. Coca-Cola Femsa is Latin America's largest distributor of Coca-Cola Co. drinks.

Coca-Cola has been the target of Chavez's backers for years. In October, Venezuelan contractors and former workers of Coca-Cola slowed output for two days by blockading the company's four bottling plants and dozens of distribution facilities, seeking alleged overdue severance payments. Iris Varela, a ruling coalition lawmaker, has repeatedly called on the government to seize Coca-Cola assets in the country.

Tax Deadline

The alleged violation of tax rules came after the company failed to complete value-added tax forms that should have been included in the company's books, Seniat's Silva said. The agency closed more than 3,800 businesses in the eight weeks through Feb. 24, assessing fines worth more than $4.5 billion bolivars ($2.1 million).

The tax authority also closed a number of businesses alongside Coca-Cola today, Silva said. He didn't elaborate.

Femsa, which denied any wrongdoing, will abide by the ruling, according to the statement.

``We accept this regrettable decision and reiterate our commitment to continue creating value for all the Venezuelan people and serving our customers and consumer with the highest quality products in the marketplace,'' the company said.

Fomento Economico Mexicano SAB, the Monterrey-based beverage company known as Femsa, controls 53.7 percent of Mexico City-based Coca-Cola Femsa SAB, which owns the Coca-Cola franchise in Venezuela. Coca-Cola Co. owns 31.6 percent of Coca- Cola Femsa.

To contact the reporter on this story: Alex Kennedy in Caracas at akennedy1@bloomberg.net; Guillermo Parra-Bernal in Caracas at gparra@bloomberg.net

Last Updated: March 6, 2007 19:32 EST