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I can't agree with the IC idea. In practice, importers would set up fake shell companies to invoice the imported goods at a lesser price than the actual cost -
by patrickgzill 17y ago
I can't agree with the IC idea.
In practice, importers would set up fake shell companies to invoice the imported goods at a lesser price than the actual cost - the incentives to do so would be enormous.
Not unlike the behavior of the "re-insurance" business - which Buffett has been involved in since 1998 or so with his purchase of General Re-insurance and with another re-insurance company called National Indemnity.
- dreyfiz 17y agoSimilarly, the market in carbon emission credits is rife with fraud.
- patio11 17y agoIf you look at the numbers it appears that the market in fraud is rife with carbon emissions credits. Not even joking -- one particular fraud (VAT carousel) was generating over 90% of the exchange volume, according to Europol.
- falsestprophet 17y agoThere are strong incentives to break many laws. There are also often adequately strong disincentives: fines and prison for example.
- patrickgzill 17y agoIf it is cross-border it is almost impossible to prosecute. Not suggesting fraud, but many international companies do use transfer prices to manage recognized profits in different countries; clearly they will shift income to lower-tax areas.