They say "Pay your taxes, hold your head high". Well, not so fast. If you are a part of the Indian IT Industry then I would ask you to wait. That's because come the month of January, employees all over India will become busy in submitting bills and receipts to claim tax exemption Nothing wrong with that. It's a provision given by the Government. But the key point here is that for expenses like petrol and telephone, it's mandatory that it should be an expense done for business purpose and not personal.
Every year there is an obscenely large amount of bills that are submitted and accepted but have nothing to do with business. The bills per se are not fraudulent but the expense is clearly a personal one. Medical bills and rent receipts are a different story. Many of them are clearly fraudulent. Medical bills are procured from corrupt (this word has lost its meaning) shop owners and rent receipts are printed, forged and submitted by people who are living in their own or parent's house for donkey's years. This goes on year after year with no obstruction whatsoever from employers and no one thinks twice about it. If you are one of the few people who do not submit fake bills and fraudulent expenses, give yourself a pat on the back. But look around and you'll see that you're in a terrible minority.
I've had heated discussions with friends, colleagues and even employers on this point. I have tried in vain to convince my colleagues that this is illegal not just unethical. I've tried to make employers put in some stringent policies for avoiding this but to no avail. Over the course of these discussions I've heard many excuses:-
1) Everyone does it - Well, this excuse has been heard many times but in whichever context you use it, it is definitely not applicable. The fact that everyone is doing it does not give you the right. It still makes your actions illegal. The only consolation is that you're not alone.
2) What is the government doing for me? - I don't want to sound cliched but John F. Kennedy's statement "Ask not what your country can do for you, ask what you can do for your country" stands true here. You may not like a particular government and think that it is corrupt. But that in no way gives you the right to not pay taxes. If you think that your taxes are always going to end up in some corrupt politician's pocket, you are wrong. Your money might also be helping fund the Pulse Polio campaign which has made India polio free. The fact is you cannot rationalize using this excuse and the real truth is that you just want to save money.
3) I need to save money - Tough luck. If it is correct to use illegal means to save money and essentially make money, then we need to release a lot of prisoners in our jails as many of them indulged in theft as a way to get out of poverty. Saving money is good but only if it is done by legal means. Just because you don't get caught doesn't make this legal. It's just like following traffic signals when the traffic policeman is not present. You know you won't get caught or have to pay a fine, but you still follow the rule (hopefully).
4) Catch the corrupt politicians first - Yes, they need to be caught and taught a lesson. As a country, India needs to improve a lot in terms of corruption. But it starts with every individual. We have no right to berate the corrupt politicians and talk tough about them if we ourselves are indulging in corruption. Yes, avoiding taxes by fraudulent means is corruption. Just because it's not under the table doesn't make it any less grave. So before you do a fast against corruption to support Anna Hazare or talk about severe punishments for A. Raja and Suresh Kalmadi, think whether you have earned the right to make such statements.
The sad part about all this is that the employees who are indulging in these practices to "save money" are ones getting 6 figure or even 7 figure salaries. You may think that these small amounts will not make a difference but it does. As an example and that too a very conservative one, let's consider that only half of the Indian IT industry (about 15 lakh individuals) end up not paying just Rs. 1,000 in taxes by fraudulent means. Essentially we end up not paying the exchequer Rs. 1,50,00,00,000 in taxes. That's 150 Crores. This is still a very very conservative figure. So think again.
What are the solutions to this? Well, if you're not in a position to formulate policy or make your voice heard to the management then you can definitely make some changes in yourself. Don't give fake receipts and fake reimbursement claims Encourage your colleagues, friends to do the same and be a role model for others. However the onus lies more on the employers and policy makers. Every company should have a strict policy of dealing with fake receipts and claims. If you are a small company it's easier. You know what is a business expense and what is not. You know who lives in his own house and who lives in a rented accommodation For large companies, it's important to do surprise checks and punish offenders. It's only when people know that they will be punished severely for saving couple of thousand rupees that they will think again. If there's no punishment, it's just a bonus.
Whenever we see a traffic cop, we think of him as a corrupt guy taking money without giving a receipt. We take pride in saying that we were caught but we insisted on a receipt from the policeman. Where does this pride go when you submit a fake receipt for rent or petrol? The next time you bad mouth a policeman for being corrupt, compare yourself with him. This guy stands in the sun, in all the pollution, works in terrible shifts and gets a measly salary for his work. You work in a plush A.C. office, get free or subsidized food and a fat pay cheque every month. If you can justify yourself by any excuse for not paying tax, then he is more than justified in taking money without giving a receipt.
The truth is BOTH are wrong. There is no justification or excuse for indulging in illegal and unethical behavior. The sooner we realize that as Indians, we will take a bigger step towards eradicating corruption.
