Excuse Not Acceptable

[stef]

This could have a major impact on the Philippines but i think it is the right way to go and the first step in putting the things that are wrong here right.MANILA, Philippines—Finance Secretary Cesar Purisima has found it unacceptable for banks to lend money even to those considered to be delinquent in their payment of taxes.The banks explained that lending could fall drastically if they would be obliged to lend only to tax-compliant borrowers—an excuse Purisima seemed to find hard to swallow.The Department of Finance earlier called on banks to help the government in its tax evasion drive. In particular, banks were asked to require borrowers to turn in the same financial statements they submitted to the Bureau of Internal Revenue prior to approval of their loans.Purisima cited the rampant practice among corporate entities of maintaining two sets of books—one for the BIR and one for the bank they usually turn to for loans.The financial statement submitted to the BIR is one that shows a lower income (to reduce tax liabilities), while the one that is shown to banks indicates a higher income (to avail itself of a higher amount of loan or to help ensure it gets the loan).“Having two sets of books is illegal,” Purisima said.full story here http://business.inqu...-not-acceptable

[Tom in Texas]

MANILA, Philippines—Finance Secretary Cesar Purisima has found it unacceptable for banks to lend money even to those considered to be delinquent in their payment of taxes.

If a person (or company) can't borrow money... how are they going to pay their taxes?That's an issue the U.S. government is just beginning to ponder. (yes... this is an actual unmodified photo of a U.S. taxpayer that is just barely hanging on).Tom in Texas