Tuesday, October 14, 2008

Target of the raid: Oilink or Unioil?

philippine government

Click the image to enlarge

Operatives of the Presidential Anti-Smuggling Group raided Monday the depot of Oilink Incorporated in Mariveles, Bataan to prevent the release of imported fuel products under the Unioil brand.

The PASG has maintained that Oilink, which owes government P2.7 billion worth of taxes through technical smuggling, has been using Unioil as a dummy to sell imported fuel products.

Lawyers of Unioil and Oilink have immediately called for a press conference in Quezon City to denounce the raid.

According to the legal counsels, Unioil and Oilink are two separate entities though certain personalities have stakes in both oil firm.

Oilink counsel Raymond Zorilla said the raiding team did not have a mission order or search warrant and has punched one of their depot supervisors.

“They hit him in the chest when he asked kung sino sila,” Zorilla said.

ABS-CBN news

The raid yesterday has a deeper purpose other than raiding them for tax evasion. In the past few weeks, Unioil was the first one to declare oil price rollbacks. In line with that, the other companies, including the big 3 are also forced to follow.

The government might not be happy because of the domino effect they encountered. first, the taxes those companies will remit will decrease. Next, the government will have less money to spend. Just take a look at the picture above. It exactly depicts what they are doing. When the conutry lacks money, they take out money from peoples pocket rather than the government making the sacrifice.

Of course, another reason was the tax evasion but, are you sure that it is about that? As far as I know, no big company pays the right amount of tax (I have no or small evidence though), they bribe high ranking officials to avoid these kinds of scandals. What happens to those who declines to bribe? They get raided, bad PR and threats from the government.

You know why I said that? Because in small scale (Small businesses), businessmen experiences the same thing! You comply with everything, give them ALL the necessary papers and documents, and they still find faults in small holes just to get you to agree to bribe and to shut them up!

In reality, doing business here in the Philippines is not as easy as it looks. You've got to have right connections, finance and the needed skills to get it going.

"Money is an efficient and effective speaker"