Guatemalan companies have a greedy partner

Companies that operate in Guatemala have a partner who every year takes a third of their earnings, writes José Raúl González Merlo of Guatemala's National Center for Economic Research (CIEN).

Tuesday, May 20, 2008

The partner doesn't contribute a single cent to capital but has the right to study every last number in the companies' accounts. He contributes no new ideas but, when he feels like it, he can increase his take arbitrarily or impose fines and surcharges.
They call him the taxman and the 64,000-dollar question is: if he doesn't contribute anything, what use can he be?

More on this topic

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The executive power has formally withdrawn the Law on Tax Breaks and Rationalization of Public Expenditure Control to Strengthen Public Finances, known as "paque-tito" in Spanish.

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Álvaro Colom Insists on Discussing Tax Reform

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Guatemala's government presents a fiscal reform initiative

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