U.S. loses $2.3 trillion in tax revenue due to strategic mispricing of international trade goods, according to FIU professor

MIAMI, Aug. 2, 2016 /PRNewswire-USNewswire/ — Trillions of dollars may be missing from U.S. government coffers due to widespread corporate tax evasion and criminal money laundering strategies.

FIU College of Business professor John Zdanowicz conducted an analysis of 12 years’ worth of U.S. Customs data and found that abnormally priced goods imported and exported by U.S. companies are masking complex tax avoidance strategies that have cost the U.S. government more than $2.3 trillion in revenue from 2003 to 2014.

Called false invoicing, it is the same kind of scheme used to fund domestic terrorism by moving money into the U.S., and moving proceeds of illegal activities, such as drug profits, out of the United States undetected.

“Criminals and tax evaders have discovered that laundering money through the banking system is dangerous, especially with the new financial institution reporting requirements under the Patriot Act and other banking regulations,” Zdanowicz said.  “However, moving money through international trade can be virtually undetectable.”


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