Some execs ‘tax cheats’

CEBU, Philippines – After a survey showed business owners revealing that bribery is frequent in their dealings with the government, that same survey has also revealed that some business executives are not paying the right taxes to the government.

Results of the 2014/15 Social Weather Stations Survey of Enterprises on Corruption released on August 27 showed that 28 percent of executives surveyed said there is corruption in the private sector in line with tax fraud.

Although for the past 13 years, the executives also said corruption in the private sector has been decreasing from last 2002 and 2003 by 40 percent.

Five percent of the respondents, on the other hand, said business sectors lack good and honest business practices.

SWS also showed that 49 percent believed that “most” executives in their own sector of business are not corrupt while 17 percent said “almost all” companies conduct honest business practices and pay taxes honestly.

Furthermore, 32 percent said almost all companies issue receipts for all revenues and 48 percent demand receipts for all payments for expenses.

The 2014/15 Survey of Enterprises on Corruption is the twelfth in a series of surveys done by SWS since 2000. A total of 100 respondent enterprises were surveyed in Metro Cebu.

In totality, 966 company executives, 325 of whom came from randomly drawn large enterprises, while 641 came from randomly drawn small and medium enterprises.

In Metro Cebu, 12 percent said “almost all” companies in their own line of business pay correct taxes while 53 percent said “most” of them are religious taxpayers.

The poll also showed that many prefer not to issue receipts. Only 27 percent said majority have issued receipts for all their income.

According to the survey, 68 percent say that cheating the government for the benefit of the company is always wrong.

SWS vice president Linda Luz Guerrero said business sectors need to properly observe transparency and accountability along with government agencies.

“Honest business practices still leave much to be desired,” she said.

Guerrero reiterated that the best ways for businesses to fight corruption is to use honest business practices, never pay bribes and know the law.

Moreover, nearly 8 in 10 executives or 79 percent said the procedures or system of transactions of city/municipal offices that they have had transactions with are "somewhat/definitely transparent." This is a new high rate compared to 74 percent in 2009, 73 percent in 2012, and 78 percent in 2013.

Fifty-nine percent said the process of business permits/licenses renewal is easier now than three years ago, and the use of the Internet to transact with government has expanded.

Getting local government permits/licenses stayed at 25 percent from 2013 to 2014/15, 6 points below the 31 percent in 2012.

Assessment/payment of income taxes was at 24 percent in 2014/15 from 23 percent in 2013, 3 points below the 27 percent in 2012.

Getting national government permits and licenses rose by 2 points to 21 percent in 2014/15, from 19 percent in 2013 and 2012.

Complying with import regulations, including payment of import duties, rose by 3 points to 18 percent in 2014/15, from 15 percent in 2013, similar to 17 percent in 2012.

Supplying government with goods and services rose by 3 points to 15 percent in 2014/15, from 12 percent in 2013, and 14 percent in 2012. — /NSA (FREEMAN)