Scam and corruption

By ETCO
14/11/2012

Source: O Globo - 06/11/2012

 

They use various devices to obtain illicit gains

An important transformation begins to take place with the gradual realization, by the population in general, that the purchase of certain products at artificially low prices is harmful to their own interests.

What is at stake in certain cases is tax evasion for acts of fraud, forgery, corruption.

Evasion that, of course, results in a reduction of resources available to government authorities for application in essential public policies, such as health, education, infrastructure.

The fuel sector is emblematic of this situation.

In it, vested interests use the most varied devices to obtain illicit gains: from fraud, through the mixture of inappropriate products, to constant appeals to the Judiciary in the search for injunctions that enable the continued non-payment of taxes.

Some companies in the sector try to achieve competitive advantages by reducing, through unethical means, the final price of the product. Although the price difference seems marginal, in reality the sale of large volumes - as is the essence of the fuel industry - generates huge undue gains.

This is at the expense of serious and responsible companies, which regularly pay their taxes.

This characterizes a situation of blatant unfair competition.

Conquering the market with the practice of non-payment of taxes, either by means of judicial remedies or by trying to offset debts with debatable assets, such as certain court orders, is something that affects the national regulatory system, stimulates unfair competition and deprives public coffers money needed to support public interest programs and initiatives.

The consumer is the biggest loser.

In view of this scenario, the courageous and forceful performance of the government of the State of Rio de Janeiro deserves full support in recovering the taxes owed by fuel companies installed in the state and who are in default or are in default.

The Brazilian Institute of Competitive Ethics (ETCO), committed to combating misconduct that damages the business environment, distorts competition conditions and damages the country's development, draws attention to the serious problem of tax evasion in marketing of fuels.

Roberto Abdenur is executive president of the Brazilian Institute of Competitive Ethics (ETCO)