Using ATMs for tax fraud.
In the Zembla’s broadcast on money laundering and ATMs regularly is mentioned that cash sales is so important if entrepreneurs do not want to meet their tax obligations. That is why they prefer cash turnover. In this way it is easier NOT to declare this turnover. I understand the confusion and for tax fraud this is certainly true. “You can easily forget to book cash turnover” is the adage in tax fraud. The ATM can be very helpful in achieving this goal.
So if you are in a store and want to pay with your bank card and you receive the comment “sorry, that is not possible here. Or the variation “Sorry, our ATM just broke down”. But you are immediately offered to withdraw the amount from an ATM. Then perhaps you should consider the entrepreneur’s need NOT to want to account for your purchase as taxable turnover.
Using ATMs for money laundering.
The money launderer on the other hand wants to declare a LOT of turnover when using the ATM. Please note that this does not necessarily mean that he also declares a lot of taxable profit. The Zembla documentary also gives examples on how to get more turnover. The advisor talks about MORE fries sales or beer sales. That is why companies with a LOT of cash turnover, such as brothels, cafeterias or arcades/casinos, are suitable for this money laundering method. With this type of company there is the idea that people want and need to pay with cash more often. So a lot (and preferably TOO much) crash turnover makes sense. Also holiday parks are an ideal location. Especially in the Netherlands if many German tourists come there. The reason for this is that, unlike the Netherlands, Germany is still more of a cash economy. So it is much more normal for them to pay in cash.
Because the money launderer’s idea is that the more cash turnover the entrepreneur has made on paper, the more he can put into the ATM as legitimate cash.
The trend in revenue recognition of the entrepreneur as a money launderer is therefore exactly the opposite of the tax fraudster. The money launderer more , the tax fraudster less.
It is clear that with the money launderer it are not real sales, but the declared cash that goes into the ATM originate from drugs or other crimes.
There is more to say about tax fraud vs money laundering.
We will describe in another contribution soon how entrepreneurs prevent that high turnover does not also mean paying a lot of tax.
Just as much as why companies where many guests come from cash oriented countries like Germany are also so attractive. But also that the request from the first paragraph to use the ATM not only was helpful for tax fraud. Once you actually start using your cards you are also very helpful in the further money laundering process. Both ellements ask for more explanation and we will come back on this as soon as it shows to be relevant.
But for now it is important that it is clear that the trend for money laundering entrepreneurs and tax fraudsters in terms of turnover is actually different (even the opposite).
