Oh, Peru

20 Oct

A couple software developers have been using our “office” apartment for the last couple months and want to pay me a little something for it ($35/mo.). Their non-profit organization requires an official receipt, as do all transactions over $2 in Peru. Since my Peruvian company doesn’t pay for the apartment, I must issue the receipt personally. But do this, I need to have a personal tax ID as well as a business tax ID. So in August, I made the trip to the SUNAT office to set this up. Then I went online to sign up for the ability to issue receipts electronically. After a few days, I was able to issue the receipt. I emailed the PDF to the organization, and they deposited $70 into my bank account in Lima. The bank deducted $2.67 because that transaction occurred in Lima, whereas my account is based in Arequipa (US banks are clearly missing some revenue opportunities from out-of-state transactions). This is a lot of administrative overhead to receive $67.33.

It’s now two months later and time to receive another $70. I go to the online system to issue the receipt only to find out that I am no longer permitted to do so because the tax authority (SUNAT) cannot find my physical address. Perhaps I could use my business account, then. Oh no, they can’t find that address, either. This is very frustrating since both of these addresses were previously verified. Now I must make another trip to SUNAT and wait for them to come out and find the place again.

The reason all these procedures are in place is to fight corruption. It’s not working because it turns out you can just as easily bribe officials to circumvent anti-corruption measures as you can to be corrupt in the first place. Thus, corruption (and the resulting countermeasures) raises the cost of doing business for everyone and suppresses wages due to lower productivity.

Righteousness exalts a nation, but sin is a reproach to any people.

Prov. 14:34

6 Responses to “Oh, Peru”

  1. David Houghton October 20, 2014 at 12:33 pm #

    May I share this story with our International Business professor? I think it would make a great addition to one of his lectures if he could reference this anti-corruption experience.

  2. Millie October 20, 2014 at 1:03 pm #

    Praying to the One more powerful than the system to give you the extra grace needed to hang in there and overcome that corrupted system so common in every Spanish country! Dios te de Fortaleza y mucha paciencia, David! Orando por ti!

  3. georgiajammy October 20, 2014 at 1:09 pm #

    Ugh! That sounds SO complicated!

  4. Laura October 20, 2014 at 2:51 pm #

    Wow! How frustrating! 😦

  5. Judy Chandler October 20, 2014 at 4:48 pm #

    Maybe the next step is becoming a citizen and running for president! Unreal. I guess that is what fear does. The Ebola fear here is just as senseless. Love, Mom


  6. Bill Chandler October 21, 2014 at 3:33 pm #

    YOu are on a most interesting mission. Your experiences have one common denominator, it’s great to be an America living in the good old U.S.A. It must be very frustrating at times but I’m sure your trust in the Lord and a loving family keeps your spirits up. Just a family update to keep you posted on your Grandpa’s current experiences. October a family affair. Really Started Sept. 28 when our house guests were Sandy, Steve, Matt, Gretchen, Jordan and Andrew. Big crew for our small 2 B.R. townhouse. Rented a unit a block away so that The Matt Winfrey family would have comfortable bed room accommodations. An enjoyable time had by all. A week later Pam, Syls daughter, arrived from Mishawaka, Indiana for a 10 day visit. During her visit Mark and Jody from Garden City, Kansas arrived on the scene. Another nice family reunion. To make October complete Dawn and Marvin McGinnis from K.C. arrive this coming Friday. Dawn is Sylvia’s niece. I think your may have met them at some time or another. Marvin is also one of your high tech compadres. We are planning November as recovery month. One of us turns 92 sometime after Thanksgiving. Hello to Vickie, Daniel, Rebekah, Anna, and Timothy. Michael not included as he is not up to Peruvian life styles. Love to All Gramps

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