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BMc2020 | 6 months ago

Money launderning is making it look like the taxes have been paid.

After you pay your W2 income taxes for the year, your income for the year is no longer taxable.

edit: I guess I can't argue with the holy writ of wikipedia, but it's how they got Al Capone.

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LatteLazy|6 months ago

That’s tax evasion.

Money laundering is disguising the source or use of funds (making illegally sourced cash look legally sourced).

Plenty of people would (do) happily pay some tax on cash as part of avoiding difficult questions about the source.

bluGill|6 months ago

They are often related though as if you have illegal money you also didn't pap taxes on it and in turn they can get you because they may not know where the money is from they know you spent more than your taxes indicate is possible.

mothballed|6 months ago

Just using an unlicensed hawaladar to transmit legally earned and taxed money is money laundering (whether that is the actual statute that would be charged, idk, but it falls under the stuff AML compliance is supposed to catch). The whole system is absolutely insane.