Prison policy and corporate tax benefits

There has been a lot of news during the end of the year related to prisons and the inmate population. We have heard harsh news, such as that there is such overcrowding in the El Pedregal prison in Medellin that there is a "pico y placa" mechanism so that inmates -being numbered- can sleep for hours.

This, despite the provisions of Law 1709 of 2014 that provides mechanisms to decongest prisons, means that there is still the famous "unconstitutional state of affairs" decreed by the famous sentence T-153/98 of the Constitutional Court.

We have also heard more pleasant news, such as that the National Planning Department and the Ministry of Justice have launched the "Second Chances" program, aimed at encouraging private investment in education and work in prisons.

Finally, we have heard happy news such as that the restaurant "El Interno" of the San Diego prison in Cartagena, in a project led by Johanna Bahamón, opened its doors to the public, thus giving a second chance of life and re-socialization, through work and progress, to the inmates of that prison.

Countries such as the United States have realized that the best form of resocialization is dignified and well-paid work, which in turn can benefit employers in many ways.

According to the American newspaper Left Business Observer, 100% of the U.S. military helmets, implements of war and campaign equipment are produced in U.S. prisons, as are 93% of paint brushes, 92% of oven appliances, 32% of electrical appliances for the home, 30% of headphones and microphones and 21% of office furniture.

Recall that companies such as K-mart and J.C. Penny have their Jeans production in Tennesee prisons and McDonalds gets its plastic utensils and uniforms from companies that produce them from Oregon prisons.

In view of the above, a bill is being drafted in the Colombian Congress through which "mechanisms are established to improve the conditions of the prison and penitentiary system in Colombia".

Said bill establishes as incentives to achieve such purpose that national or foreign companies or industries that employ persons held in prison establishments, in a minimum of 10% of their total payroll "may deduct from their income up to 100% of the value of the remuneration agreed upon to the inmates employed, as well as the costs of transportation of merchandise, goods or services from or to the prison during the taxable year". 

It also indicates that when companies allocate a percentage of their profits to improve prison conditions, the aforementioned incentive will amount to 100% of the value of the investments made, provided that the improvement or physical adaptation of the facilities has been agreed with Inpec. Finally, the law indicates that such benefits will not be cumulative among themselves and neither will they be cumulative with those existing in other laws.

The intention of the bill is good, but clearly insufficient.

The tax benefits granted to entrepreneurs should be such that they prefer to develop their businesses from prisons rather than from other production centers.

The Congress should take this unique opportunity to empower a lying labor mass and at the same time grant real and attractive tax benefits to the entrepreneurs who promote it.

The latter is true corporate social responsibility.