Road accident deaths drop by 50% in Saudi Arabia    SR 3.95 million fines for 3 employees of a company and 6-month jail for one for violating Capital Market Law    Qassim emir launches 52 health projects costing a total of SR456 million    BD and INS partner to elevate standards of infusion care in MENAT    Dubai Design Week launches its 10th edition, celebrating creativity and innovation    GASTAT: Passengers of public transport bus and train soar 176% and 33% respectively in 2023    Fakeeh Care Group reports 9M-2024 net profit of SR195.3 million, up 49% y-o-y driven by solid revenue growth and robust profitability    Italy's 'Libra' to arrive in Albania with just eight migrants on board    South Africa shuts border crossing with Mozambique over poll unrest    French families sue TikTok over harmful content that allegedly led to suicides    Harris tells supporters 'never give up' and urges peaceful transfer of power    HRT does not impact life expectancy — UK health body    Liam Payne's body to be flown back to the UK    Suspect arrested for banking fraud totaling SR493 million as Nazaha pursues corruption charges    Arab leaders and heads of state congratulate US President-elect Donald Trump    Neymar suffers muscle tear, out for 4-6 weeks    Crown Prince hails Saudi medical team that performed world's first fully robotic heart transplant    Al Nassr secures 5-1 victory over Al Ain to edge closer to knockout stage    Al Ahli extends perfect start with 5-1 victory over Al Shorta    Mitrovic's hat-trick leads Al Hilal to 3-0 victory over Esteghlal    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Smuggling, fraud cost Philippines $25.8 billion in 2011: Study
Published in The Saudi Gazette on 05 - 02 - 2014

WASHINGTON — More than $410 billion in illicit money crossed the borders of the Philippines from 1960 to 2011, with customs fraud related to imported goods surging in recent years, according to a study by a US-based anti-graft watchdog group released on Monday.
Global Financial Integrity (GFI) said a record high of $25.8 billion came into the Southeast Asian, archipelago nation illegally in 2011, the most recent year for which data was available. (GFI report: http://r.reuters.com/buv56v)
That was up from $22.9 billion in 2010, marking back-to-back years of record illicit inflows. About $14.2 billion of illicit inflows was reported for 2009, the study said.
These illicit inflows are typically the result of under-reported merchandise that is shipped into the country, said GFI economist Brian LeBlanc, one of the report's authors.
“This is mostly importers trying to avoid VAT taxes or import tariffs,” LeBlanc said. “Customs corruption is a huge issue in the Philippines,” he said.
Over the 42-year period, about $277.6 billion was illegally transferred into the country, and $132.9 billion in illicit funds went out of the country from crime, corruption, and tax evasion, the report said.
The Philippine Treasury has lost at least $19.3 billion in tax revenue since 1990 due to customs duties evasion, GFI said.
“It is our view that trade-related fraud has reached an epidemic proportion in the Philippines,” Tom Cardamone, managing director of GFI, told reporters in Manila. He added about a fourth of all goods imported into the country were not reported to the customs bureau.
Weak governance and rising levels of corruption in the Philippines were aiding illicit money flows, Cardamone said, adding he hopes the study will spur the government to consider legislative and regulatory measures to curb the illicit flows.
The report, based on trade statistics data from the International Monetary Fund, reflects conservative numbers on illicit flows as it does not capture undocumented cash and services, Cardamone said. The study was financed by the Ford Foundation, a donor to GFI, which also receives funding from governments and individuals.
GFI recommended that Philippine lawmakers take steps to strengthen enforcement of customs and anti-money laundering laws. Transactions involving tax-haven jurisdictions such as Hong Kong, Singapore and Dubai should be scrutinized more closely, the group said.
For its part, the Philippine government said it was addressing problems on smuggling via reforms such as updating customs value reference guides, calling for more transparency in reports on imports, revamping the importer accreditation process and review of the monitoring of customs bonded warehouses. “We assumed office without any illusion that this is a small-time problem. We realize that this is a systemic and deeply-rooted problem, that is why we are prepared to address it strategically and to adopt long-term solutions,” Herminio Coloma, presidential spokesman, told reporters. In December, President Benigno Aquino appointed a new management team in the customs bureau and reassigned district collectors - part of systemic reforms, Coloma said.
The Organization for Economic Co-operation and Development, a grouping of major industrialized countries, in 2010 removed the Philippines from a blacklist of non-cooperative tax havens after Manila changed its tax and bank secrecy laws. — Reuters


Clic here to read the story from its source.