⌛ Ghosting a business is illegal, but if you are or intend to please read this

Slight correction also the problem is the foriegner thinks its okay to brag and seen to run the business her/himself. Many times their way is against the law especial if they do not pay tax or fiddle the tax.

There are those within the renting property business and many do not even have a business licence. What they don't realise if they have a disgruntled client they can get in trouble with the BIR and its the Filipino spouse that can be jailed. As their clients are normally other foriegners their clients are unaware of the law and BIR. But some are.....

 

This is ridiculous!! I have a bar with my partner, maybe i look like i run it, maybe I brag?
The bar is in my partners name...Totally!!! The position as far as i'm concerned, is as a Trainer! an unpaid Trainer!! If I brag...it's so she feels good about, ALL that She has achieved! I think I should be allowed to advise my wife, as I have invested in her!! if you get a loan from a bank....guess what, even they give you advice!!! Every person that comes in my bar, gives me advice, good or bad!!! Do you consider They're running the bar also??

philippine people in general are shy, i try to get the staff here, NOT TO BE SHY, as this will improve there tips, and also put them in front of others, if they at some point want to leave us and find a different job.

Apart from 1 girl here, No one has ever worked in a bar b4. I try to employ local girls from the barangay, cos i don't want them in danger going home late.
I also let them take one of the motorbikes home!

since coming here, I have had a lot of work done and witnessed some CRAZY ways of doing stuff, in general, i let them get on with it, i shout and scream when i see gross Health and Safety errors, for instance balancing in a stupid way, when a set of ladders is only 5mtrs away, or a group of workmen, Watching a child use one of them Machettes (Bolos???), while there all taking a break!! or leaving open containers in a ref.

i like to think, i am improving all my staffs lives, there getting more comfortable and less shy and even doing things safer and more logical now.
They have even started answering me back in a cheeky way, which I like! as it makes for better working conditions.

My point to all this, is one word "disgruntled" someone is always going to complain! that's life!! but only stupidity would take this seriously, when your trying to do good! Jealous is another word, that can replace - disgruntled

Lastly yes! some people break the law, guess what? that goes on the world over!! not just here!! They will get found out, here it maybe eventually! but who's faults that? when many filipino's are PAID for there votes!! do they blame them for not chasing up BIR quicker? no they blame ANY easy target cos there Jealous and disgrunteled.

as a footnote, this isn't in reply to any particular post here, just from having read the thread from the start of it. don't try treating the symptoms, when you should be curing the disease!!

 

You take your chances and if it goes wrong then you can only blame your self, the point is if you are ghosting its against the law. many things are done here that do not relate to jealousy but because a foreigner has been arrogant and has not listen to reason.

I believe that happened to the previous owner of your very nice bar and establishment. He in fact bent my ear on how nasty he had been treated by the owner of the land etc etc.

He had not read the lease and had no true understanding that its not viewed as a nice thing to install an electric fence for security though its perfectly okay to do so in his last port of call South Africa. If he keeps on pursuiting vengence then he will fall prone to the no ghosting business clause in reference to visa's.

Yes many foriegner do have Ghosted businesses but those that stay in business and are successful normal insure the business is run legally by the spouse and take care not to offend if possible. And certainly learn about the laws and all requirements of running a small or large business and about your lease or any contract you take out to run such a business.

If one breaks the law one can not blame everyone or anyone else for their down fall, thats the same everywhere in the world. Here it maybe easier than most places to get away with it, but the longer one does the more chance that someone will put a spoke in the chain and its not always a case of jealousy but that could be the first obstical of awareness.

 

Still ghosting business is common practice all over the world as well, it is very difficult to prove and unless there is fraud involved, little reason to bother about it.

Sure there are Fillipino's who got their business in their wives or children names.

Personaly I got little interest in investing in the Fillipines and little faith in business sense of the family to invest in them (of course regularly somebody asks usualy in a field they have no knowledge about what so ever and a business case seems an alien concept).

You got to accept the law of the land, it is as simple as that. But I keep wondering:

1. why does the country have such a restrictive foreing investment culture?
2. why does the law seem to work pretty subjective (I all the time hear relatives complain about Korean and Chinese running businesses).
3. why do spouses of Fillipina's hardly have any rights and are forced to live on tourist and retirment visa?

Clearly there is some frustration here, some bad feelings towards foreigners who are operating in the Fillipines (maybe rightfully so, no idea). Looks to me though as if most of these businessmen are just small fish (you can not operate on such an informal basis if you are doing serious business) and mostly they bring money to the country rather than taking any out.

 

It's the people doin it should be bothered about arogantly treating those they employ or they do business with. I personally am not very bothered other than when things go wrong hearign someone blaming filipino's for their down fall etc. The fiddling of taxes I also frown on especially after I hear someone say they are fed up with pot holes in the roads etc, ect, ect. In fact its shameful and many are doing it.

You got to accept the law of the land, hmm yes you do and respect it is much different to your own country.

1. why does the country have such a restrictive foreing investment culture? hmm well its not restrictive only one sided.

2. why does the law seem to work pretty subjective (I all the time hear relatives complain about Korean and Chinese running businesses). Because the Chinese and Korean's are generally very compeditive more so that the filipino businessman and of course have the money to be compeditive.

3. why do spouses of Fillipina's hardly have any rights and are forced to live on tourist and retirment visa? In fact your misinformed foreign spouses get in for free however they are not allowed to do business without a special visa. Retirement visa means retirement so they are offered at a cost to those who want to retire.

Foriegner only lose three rights that I am aware of.

1. Not allowed to licence or own a gun
2. Not allowed to vote
3. Not allowed to stand for election

They can run a business but there are special requirements and clauses. There is nothing wrong with their filipino partner owning a micro business or bein the executive director of a larger company, but the foriegn spouse is not allowed to be involved other than of course investing the money.

The foriegn spouse has every other rights that a Filipino has.

Your probaly find that Filipino's are restricted some rights in your own country in mine UK they can not work without a work visa similar to here. Every country has its rules and laws and foriegners are restricted.

 

What is the benefit of not allowing foreign ownership (of more than 40%) of businesses?

I know there are possible exemptions for "export" businesses and the necessity of certain visas, etc. But, assume one has the necessary visa, permits, pays tax, etc. but does not qualify as an 'export' company. What is the benefit to the Philippines to prevent said foreigner from investing and owning a business here?

 

One other question...

If one is "ghosting" a business. I assume that means that all licenses, permits, etc are in the name of someone other than the "true" owner.

What prevents the named owner from selling said business and pocketing the proceeds? A lien on the business in favor of the "true" owner? Some other contractual arrangement? And do such arrangements have legal standing in Philippine courts?

Just curious...any attorneys on the forum?

 

And not to get too far from the subject at hand, but I have often wondered in the past about domestic helpers. What are the actual regulations regarding domestic helpers? Is one supposed to pay payroll tax and follow Labor regulations as with any other employment?

Certainly that is how it works in developed nations...again, just curious.

 

Thanks jesusitshot,

A working visa is almost a formality for a spouse though and to provide in your own livelihood, vote, owning land etc seem pretty basic rights. As I understand it is almost impossible to get a working visa or resident visa.

Laws are made for a reason (or basically follow the general opinion) and I am wondering what is the reason behind this, I don't really have strong opinions on the matter I am just curious.

That people who can, pay taxes seems obvious to me as well as if you are in another country you got to adapt your behaviour and looking at the business etiquette, that takes some serious adjustments (if not to say goes against everything a westerner is used to, especially from Northern Europe). It will be easy to be perceived as arrogant, while it might not be somebodies intention at all. It is of course useless to blame others if you are not able to adapt to such an environment.

Filipino Business Norms, Etiquette and Style
Doing Business in the Philippines -- U.S. Commercial Service Philippines
Philippines: Language, Culture, Etiquette and Customs
Philippines Buisness Culture Tips | Philippine Law Firm

 

That is of course a law devised by the elite rich, they the political clans are highly involved in all the big businesses and do not want to much foriegn compedition. Remember most of the money here is in the hands of the elite 6% percent.