10\/21\/2013 Banking and Securities Fraud - Secret Money and Underground Economy A group of clandestine transactions that create(financial value but are

10/21/2013 Banking and Securities Fraud - Secret Money and...

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Secret Money and Underground Economy A group of clandestine transactions that create (financial) value, but are conducted with the intent of escaping something-taxes, bribes, gov. regulations Underground Economy exists for four reasons: To escape taxation Can be more that half in certain countries To escape regulation Perceive hindrance that affect business flow: prices, wages, returns of capital, and exchange rates To escape prohibition Narcotics, smuggling, gambling, prostitution To escape further corruption Bribes, corruption, public procurement, customs clearance, and zoning ordinances. Vehicles and Demands for Secret Money Vehicles Domestic Currency Foreign Currency Precious metals Stamps and Collectibles Bearer instruments Cashier's’ check, Money order Bearer bonds Corporate bonds/stock, government bonds Demands Bribery and corruption Capital Flight Incentive for people with jail time to escape Fraud Undercover activities Insider trading Money laundering Smuggling/black markets Tax evasion Off-Shore Havens A tax haven is a country whose laws, regulations, traditions, and treaty arrangements make it possible for a person to reduce overall tax burdens.
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  • Fall '16
  • Steve Evens
  • Cheque, Tax haven, Tax avoidance and tax evasion

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