I read an article about tax havens like Liechtenstein where CEO's launder money/tax evade through banks like those owned by the government (LGT in Lichtenstein owned by the royal family). How does this work?
Other - Taxes - 5 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Read all about it. Ya gotta love that there is a moneylaundering.com website. http://money.howstuffworks.com/money-laundering.htm http://www.moneylaundering.com/ http://en.wikipedia.org/wiki/Money_laundering
2 :
I don't think they launder per say they just evade taxes by not reporting interest income with the help of the government. The IRS knows you have the money to begin with. True laundering would be a restaurant you have fake receipts and pass illegal cash through the business like drug proceedes( The cash was never legal) thru the business like it was a successful business pay sales tax report the illegal cash as restraurant income.
3 :
Discussing it might be considered conspiracy to launder and evade taxes. Just pay your taxes and stop wondering how that dark stuff works. It will land you in prison and leave you miserable.
4 :
No for the faint of heart, creative accounting sounds better, money laundry is just a term, the true is: there are holes in the law and taking advantage of them is not a crime, felony or anything like that. Knowledge of the law is your best friend.
5 :
A lot of it involved "fronts". The Mafia did a lot of this, where they earned illegal money that was fenced through a gas station that they owned. They would report huge earnings for their gas station, so that all of this money appeared to be legally earned.
