7 ms·
It seems that Hawala might be used for import tax evasion: >Most hawaladars take care of money transfers as a side part of their small business, so often hawal
by yetanotherphd 13y ago
It seems that Hawala might be used for import tax evasion:
>Most hawaladars take care of money transfers as a side part of their small business, so often hawaladars pay each other back in non-monetary ways. The most common case is by discounting goods in an export/import business. So in Ibrahim’s case, if the hawaladar he visits in Dubai exports goods to the hawaladar in Alexandria, the Dubai based lender can pay off his debt by discounting the value of his goods.
If the cost of the imported goods is discounted, then proportionally less import tax will be paid.