This is a simple tip into business ethics 101. So buckle up;
The two types of money laundering is;
Laundering money to evade taxes
Laundering money to evade taxes
The first one is the illegal or illegitimate means used to generate a lot of profit being cleaned by a reputable business front. Turning dirty money from illegal means into clean money. Cooking the books to filter out the grime of dirty money into clean taxed money. This is typical use case of money laundering.
Technically you’re evading legitimate taxes that you didn’t file or report on your illegal earnings. That’s how they got Al Capone. You’re actually supposed to report your taxes for illegal conduct. Yea, I know, clown world.
the latter is,
Investing in tax credits and deductible write-offs to offset the net growth and capital gains to have a lower tax liability. Juggling hoops through beauacratic loop holes in the IRS code to mitigate paying shit. Thereby effectively reducing the amount of taxes paid, which semantically is ‘evading taxes’ and the ‘tax authorities’.
This is typically known as ‘tax avoidance’ but can become borderline evasion depending on your financial agility and monetary acrobatics when looking into the tax codes.
The second one is Basically,
Make too much money, spend on shit to pay less tax or move your incorporation to Delaware or an Irish Tax haven.
Everyone in business is doing one of the two, and some are doing both. Tax evasion and tax avoidance in essence.
Typically people do the first one to get rich. Illegal prices always undercut public, and if you’re peddling an illegal good, well there aren’t any public prices so the profits are high as fuck for illegal shit. Duh. Have you ever bought drugs in your life?
Typically people do the second one to stay rich. A lot of rich folks have trusts and use other vestment ‘vehicles’ to help ‘transport’ their wealth and transactions.
Because the goal of any good business is laundering money
Write that down, it’ll be in the exam of hard knocks coming up.
If you’re not converting some trade good or service into cash, then you’re probably not profittable. That’s just bad business.
The amount of businesses that are actually a money laundering front?
I’m talking Chinese restaurants, mom and pop shops, places no one visits. Also, have you ever heard of the Triad or Yakuza or any other far east organizations getting in trouble on the American News? No? Weird, don’t you think?
The 17 mattress stores within the same small town of 3,000 people.
You know, The Launder fronts ,Them Car washes, etc.
I’m not here to provide too much knowledge or secrets, I’m here to joke and spread ha-ha memes.
I can’t spell it out for you, so you just gonna have to math out your own math problems. Maybe you’ll get the hints that I’m dropping and see what I mean.
If I actually become too reasonable, then I’ll get the hook.
That’s not good for business, mine nor yours.
Alright, enough chit chat, drop your wallet in the bag. This post is your typical routine weekly stick up. I’m here for your money not your life, yada yada, you know the drill.
*Not Valid Financial, Legal, Life, or Any Advice