Business that lies about their income
April 23, 2007 6:31am CST
Here in the Philippines, there are lot of business who lies about their true income so that they could pay less on taxes and on some permits. Is this punishable or just ok? I just ask because these businesses has a quite good income. Why they need to cheat?
1 person likes this
24 Apr 07
I know it is hard to falsify business documents especially the receipts, but if they do they must have a good reason for it, either they are operating at break -even or at loss. The fee on business permits are outrageous and some are even redundant, try applying for a business permit and you'll know hwta I'm talking about. And even if they pay the right taxes, majority of those taxes will go to the pockets of corrupt government officials anyway.
23 Apr 07
Obviously, I can safely assume you are not involved in any licensed business, for you to make this comment. if you are a businessman, you will be shocked to learn that if you will honestly follow all the tax regulations, you will find it difficult to survive in the business (at least for a small business, I am not sure with big companies). My family has a small convenience store, and I know that the government is demanding this and that to extract money from the business. If we have to strictly follow all the regulations, only a handful of profits will be left behind, enough reason to close the business. And you have to be at par with the competitions which are sprouting like mushrooms from time to time. Again, I could never blame small business for being dishonest. It is not because of greed, this is all about survival. Well, being dishonest with our business is not as greedy as those government officials CORRUPTING the money taxpayers are paying.
23 Apr 07
That is an irony here in the philippines. Those that pay honestly are the ones that BIR is looking at very carefully and is watched and those that are cheating their income reporting are the ones that gets ok since they bribed the examiners. Those that pay honestly are scrutinized by the examiners since they do not pay bribes so they really push the businessmen and make false findings so that they could penalized them with something. So as a result of this practice businessmen tend to cheat their incomes and just bribed examiners to make their lives easier.