6 ms·

> In some cases (I won't say which) they essentially launder profits through the "tech" parts of the company. They basically optimize for cheap people they bill

> In some cases (I won't say which) they essentially launder profits through the "tech" parts of the company. They basically optimize for cheap people they bill out to the "real" company at some enormous fee. Can you explain this differently? I don't understand how you would launder profits through yourself (or why you're laundering them at all-tax reasons?).

ekianjo 7y ago
i guess outsourcing the actual work for very cheap and charging the end client a much higher amount. very common.
- asfarley 7y ago
  That doesn't sound like laundering at all - isn't that just good business?
  - ekianjo 7y ago
    I would never call it laundering. Just what the previous poster labelled it.
- z3t4 7y ago
  Basicslly how all profitable businesses work more or less. A fun game to play in order to understand the business is to figure out what they actually sell. For example a software business might sell developer's time.
  - ekianjo 7y ago
    > A fun game to play in order to understand the business is to figure out what they actually sell. I think it's more fun to understand how much they can charge for what they sell.
asark 7y ago
> Can you explain this differently? I don't understand how you would launder profits through yourself (or why you're laundering them at all-tax reasons?). Same as licensing your name to "another" company that's actually your company, for (coincidentally I'm sure!) all of their profit, in order to shift money around. Have umbrella company. Put your tech folks either directly in the umbrella company or in some child company. Make your other child companies (or even ones you don't have directly related to the umbrella corp) "pay" the one with the tech folks for their dev work, some arbitrary amount of money (however much you want to move). Now the umbrella company or tech child company has all the profit from your other companies, which you've done for tax or liability reasons or whatever. Mission accomplished. Whether actual tech work was done may or may not matter, depending on whether you were also trying to accomplish actual work at the same time, or just shifting money.

ekianjo 7y ago

i guess outsourcing the actual work for very cheap and charging the end client a much higher amount. very common.

asfarley 7y ago
That doesn't sound like laundering at all - isn't that just good business?
- ekianjo 7y ago
  I would never call it laundering. Just what the previous poster labelled it.
z3t4 7y ago
Basicslly how all profitable businesses work more or less. A fun game to play in order to understand the business is to figure out what they actually sell. For example a software business might sell developer's time.
- ekianjo 7y ago
  > A fun game to play in order to understand the business is to figure out what they actually sell. I think it's more fun to understand how much they can charge for what they sell.

asark 7y ago

> Can you explain this differently? I don't understand how you would launder profits through yourself (or why you're laundering them at all-tax reasons?). Same as licensing your name to "another" company that's actually your company, for (coincidentally I'm sure!) all of their profit, in order to shift money around. Have umbrella company. Put your tech folks either directly in the umbrella company or in some child company. Make your other child companies (or even ones you don't have directly related to the umbrella corp) "pay" the one with the tech folks for their dev work, some arbitrary amount of money (however much you want to move). Now the umbrella company or tech child company has all the profit from your other companies, which you've done for tax or liability reasons or whatever. Mission accomplished. Whether actual tech work was done may or may not matter, depending on whether you were also trying to accomplish actual work at the same time, or just shifting money.