I give you the following example.
Recently the Florida Dept. of Revenue (DOR) conducted an audit of Energy Services of Pensacola (ESP) records. ESP is the natural gas company owned and operated by the City of Pensacola. The DOR found that many ESP accounts were coded "tax exempt" and therefore no sales tax had been collected on those accounts and paid to the state. The state demanded that if ESP couldn't prove those accounts were rightfully tax exempt, ESP would have to pay all of the back sales tax they had failed to pay to the state. ESP doesn't know how the problem occurred. They suspect it was a computer error and it was unbeknownst to the customers.
Now, if I failed to collect and pay to the government, taxes on goods or services sold to you, you'd probably tell me that's my problem and be done with it. You certainly wouldn't want me to come back to you and say you're responsible for those taxes, right? Ah, but whenever government has a shortfall, they find a way to make taxpayers pay the increase as opposed to cutting their expenses, yet that is what we always ask of businesses/corporations.
Back to the story; this happened to my dry cleaning business. I happen to be an ESP customer in my business and am now being forced to pay over $5,200 in back sales tax. To you who say; it's no big deal, just pay it, you owe it. I say; when was the last time you scrutinized your utility bill to be sure they were charging you all the appropriate fees and taxes? There is nothing on the bill indicating "tax exempt." Do you ask who's head will roll at the ESP for the error? You'd ask that question of a private sector company. Who's pocket do you think this money will come out of given the current economy? If the business doesn't have the money and will have to fire at least one person and possibly go out of business (thus putting 6-7 people into unemployment) would you prefer more people on unemployment?
What is really disgusting is that now, the gas company (which everyone acts as if is a separate entity from government) gets to act as both a monopoly and thug government; two things we all want the our government to protect us from. They say pay up or we shut you off and you have nowhere else to buy your natural gas and they say fight us and we'll bring the full power and authority of the government to bear. Can you say thug-ocracy?
So when you hear about some "crook" CEO or businessman who got paid more money than you think he should've, just remember that in government they never seem to get fired and you rarely hear about them. They just get moved to a new job, keeping all their benefits and pay.
Although I can empathize with your position, I would ask several questions: 1) Do your gas bills indicate that you have been charged a tax? It would seem that you paid your bill in good faith and there may be exemptions. Meaning: that you cannot be penalized if taxes are not listed on your bill and it is implied that you are paying taxes when you pay your bill. Second, if you are not the only one, you may be able to find other businesses in the same boat and seek legal action as a group.
ReplyDeleteI can understand your frustrations in the reality that it is harder for a goverment worker to get fired than an employee at a private company. We are all accountable in our actions (mistakes as well as good things).
Maybe I misunderstand your point about the "crook" CEO. There are CEO's who get bonuses for ruining companies and/or poor performance. I believe those packages are determined by Boards rather than employees or shareholders. Secondly, The question needs to be asked that when they get these bonuses, do they play a part in those packages (i.e. Bonuses in the form of stocks or hidden in retirement). My guess is that they are are aware of thess payments and they are not blind to them.
Again, maybe I am misunderstanding your point. If so disregard the latter portion. I do think that you should seek other businesses or contact your local politician to help you out in this. I wish you the best and hope that you or a group of you can stand up to the ESP and force them to eat the cost.
In response;
ReplyDelete1. Bills did specify "excise taxes" and "franchise fees" charged and paid, but nowhere was "tax exempt" ever on my bill.
2. I believe CEO's who defraud their employers are crooks and should be held accountable. My reference was more toward the news media and general public who believe every highly paid CEO is a crook, yet they rarely get fired up about the salaries paid (under the guise that "we have to pay good wages to attract the best and the brightest") to many government employees who screw up and never get fired.
3. Attorneys in my area don't want to touch this. Hmm, funny isn't it?
4. I'd like to find the other businesses affected, but I have a choice, either work to keep my business operating or spend productive time and intellect trying to lure partners in a lawsuit.
Isn't it funny that no lawyers are interested in your case? NOT. The ones around here want nothing to do with upholding the rights of the citizenry. You could spend time calling a bunch of other businesses, but even if you got a good many of them on your side and willing to make a stand you would then have to try and retain an attorney. In my experiences in a completely different state, that is also an enormous waste of time. Try even getting one to call you back, even if you bodily present yourself in their offices. I've tried and nothing has ever come of it. Can you say "AMBULANCE CHASER?". I'm not lumping family litigation or criminal lawyers in this category, but the rest of them? They are the rule, not the exception.
ReplyDeleteAnd it really is unfair that now that they've seen their mistake to project it immediately onto their customers in order to fix their own boo-boo. Used to be if you fouled up, it was your problem! What a greasy-spoon mentality! Yes, I can say "THUGS". What a pity to destroy anyone else while scrambling for their supposed deficit on the taxes. And since they are demanding payment (and it sounds like in full, immediately), I'd think they would be willing to set up a payment system whereby it could be paid in installments, especially for business owners who probably owe the most of all. But I'm guessing they don't want to do that, either.
About all I can say is I'm sorry this came out of nowhere and now has you by the bank account. I'm sure it has provided quite a few sleepless nights and a general downer on your outlook and life. These monopolies are no better than, say Bernie Madoff. Only he ripped off the rich and powerful so it got noticed and became a high-enough profile case that every prosecuting attorney or private attorney became attached to it for one reason, being most of his victims had money left, so they jumped on the retainer bandwagon to expose him for what he was. Hmmmm. Interesting, isn't it?
It sounds like this monopoly can create and implement their own rules for mistakes they're responsible for. They should have to eat it, like any other company who doesn't have a monopoly would. It's strange, it's wrong, and you're going to have to pay for it! Glad I'm not living where you are, I'd have a serious problem with it as well and I wouldn't get any help or satisfaction, either.
I guess "Big Brother" really is able to manipulate us for their own good. And get away with it very easily. And it's just a crying shame, with Christmas around the corner and unemployment still on the rise, they're willing to create more of it, and not see the big picture. In closing, can anyone say "CRIMINAL"?
Posted 11/10/10 by Michelle Corbin