Ahmed Automobiles started as a small business in 1992, buying and selling second hand cars in Yemen. Today the company is one of the top dealers for second hand cars in the country. Ahmed Automobiles buys and sells more than hundreds of cars every month. I am the director of Ahmed Automobiles.
I have been running the company since twelve years now and I have faced many legal and ethical conflicts. Some of the major ethical conficts were the question of taxes, hiding the real identity of the automobiles, wage differentials and use of unofficial land.
Taxes have been a major plight for the comppany this is specially true in Yemen because the tax rate is very high. Since the business started, the first year was the only year where we payed the entire amont of tax that was rightly due, and unfortunately that was the only year where we made a loss and since then, accounting system had been adjusted in order to under estimate the company's revenue so that taxes could be reduced.
This was very essential for the better of the company and if this was not done, the company would still be making a loss. This is done by accounting the real sales differently in two different ledgers, the second ledger is usually recorded with only 10% of the amount and towards the end, taxes are paid only on 10% of the company's revenue.
Another revenue-increasing concept that was brought into consideration was changing the identity of the car. This means to bring in an old defected Amercan vehicle, slightly changing the engine and re-selling it at a very high price, claiming it to be a Japanese car. This would cost us very less and would bring great profits. But this idea was thought of...