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Expereince running a language centre

 
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vabeckele



Joined: 19 Nov 2010
Posts: 439

PostPosted: Sat Oct 26, 2013 8:00 am    Post subject: Expereince running a language centre Reply with quote

A friend of a friend opened and runs an English centre in Nha Trang. Now, the centre got a contract from the govt. and the deal was this: the govt. puts 20000 dollars into the account under the centre's name and the owner gives 10000 of that back to the individual who signed the contract.

Good, or bad business?
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spycatcher reincarnated



Joined: 19 May 2005
Posts: 215

PostPosted: Sat Oct 26, 2013 2:48 pm    Post subject: Reply with quote

It is common knowledge that the great majority of purchases by Vietnamese government agencies and State Owned Enterprises (SOE) usually require around a 20% backhander.

These backhanders are very often institutionalised and the money all goes in to a kitty and is divvied up from time to time amongst the employees.

From what you have written, I infer there is no teaching involved and this is just outright fraud. Obviously very illegal and could carry a substantial prison sentence.

If this is a foreign company then this transaction would cause accounting difficulties. I.E. Why were they paid this money and what bills/receipts do they have for the payment out. If there are no bills then these payments should be nondeductible and therefore liable to Corporate income tax.

If it is a Vietnamese company the accounting rules are largely irrelevant.

If this is a foreigner doing this then I guess they could probably be charged under OECD bribery laws and end up in prison overseas.

If people are conducting business such as this it is especially stupid to shout their mouths off about this.
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Mattingly



Joined: 03 Jul 2008
Posts: 165

PostPosted: Sat Oct 26, 2013 4:58 pm    Post subject: Reply with quote

spycatcher reincarnated wrote:
These backhanders are very often institutionalised and the money all goes in to a kitty and is divvied up from time to time amongst the employees.

From what you have written, I infer there is no teaching involved and this is just outright fraud.


Backhanding? Fraud? Dishonestly in Vietnam?

Oh my gawd.

But seriously to the OP, any foreigner that would even venture into this territory is either terribly naiive or has money to burn.

With all due respect to your friend vabackele, this person is an ought-right fool.
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vabeckele



Joined: 19 Nov 2010
Posts: 439

PostPosted: Sat Oct 26, 2013 10:05 pm    Post subject: Reply with quote

Mattingly wrote:
spycatcher reincarnated wrote:
These backhanders are very often institutionalised and the money all goes in to a kitty and is divvied up from time to time amongst the employees.

From what you have written, I infer there is no teaching involved and this is just outright fraud.


Backhanding? Fraud? Dishonestly in Vietnam?

Oh my gawd.

But seriously to the OP, any foreigner that would even venture into this territory is either terribly naiive or has money to burn.

With all due respect to your friend vabackele, this person is an ought-right fool.



Mmm, I agree. I would, just on principle alone, steer clear of these activities. I feel that by not being sucked into this behaviour at least I am not accepting or encouraging the rampant corruption that exists here getting in the way of progress.

I have learned, quite recently that it is common practice to siphon of funds from the govt. by moving money into accounts for services that were never given (in practice I mean). An example, a company is allocated a 1000 dollars for travel, lets say. This money is then transferred to a travel company to be drawn out in cash. For his troubles, the owner of the travel company receives 10 percent.

This example is small fry comparing to some of 'real' sums involved in large construction projects.
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Anh Dep



Joined: 16 Mar 2013
Posts: 53
Location: Bangkok Thailand

PostPosted: Sun Oct 27, 2013 4:21 am    Post subject: Reply with quote

Another reason not to do it is that tax will be paid on the 2000 as it will be declared as income, then 1000 is given back. So in the end they will pay tax on 2000 plus the 1000 given back, means they would end up with about 800-900 usd.They also have to declare what the money has been given to the school for. Then the problem is the government individual will want to keep doing it and make larger amounts.
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