Probe wage violators for potential tax dodging

Published by rudy Date posted on August 17, 2010

The Bureau of Internal Revenue should immediately audit the erring firms for possible non-payment or underpayment of their tax obligations.

Firms that defraud their workers of lawful wages, or deprive their staff social security protection and other statutory benefits, are several times more likely to be cheating as well in their tax payments. On the other hand, firms dutifully complying with labor standards are several times more likely to be truthfully declaring their income and responsibly paying their tax liabilities.

The Department of Finance and the Department of Justice have vowed to file at least two criminal charges every week against suspected tax dodgers and smugglers.

The Bureau of Working Conditions inspects thousands of firms every year, and up to 20 percent of them are found underpaying the minimum wage, depriving workers their 13th-month salary and overtime pay.

Other firms are found cheating their employees of their extra pay for work on holidays, or unlawfully withholding their social security premiums.

Besides overpricing and producing substandard goods and services at the expense of consumers, there are only two ways by which unscrupulous firms cut corners to rake in excessive profits—by shortchanging workers and cheating on taxes.

Firms that underpay their workers, or violate other labor standards compete wrongfully and unfairly with law-abiding establishments that are properly compensating their employees.

We recognize that every business is entitled to earn a reasonable profit. However, respect for basic labor rights should form part of the framework within which every business must compete freely and honorably.

ernestboyherrera@yahoo.com

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