But there is another potential driver of the sharp rise in imports: People may be overinvoicing
in order to shift money abroad.
There is an urgent need for creation of separate Ministry of Multinational Corporations which would, among other things, monitor, analyse the complex factors like transfer pricing, overinvoicing
, cost and price escalations, foreign exchange manipulations, adjustments, sub-contracting and equipment leasing, political risk, etc.
Active waste, in turn, is corruption in which the individual obtains private benefit, causing a loss to public funds, for example when overinvoicing
occurs in the contracting of a public service (Bandiera, Prat, & Valletti, 2009.
Azhar (2001) On Overinvoicing
of Exports in Pakistan.
However, leakages due to overinvoicing
by exporters and mismatch between overseas shipment claims and bank transactions has emerged as a major area for concern.
This may be accomplished through acquiring loans, making salary payments, paying consulting fees, the use of false import/export invoices, overinvoicing
and underinvoicing, real estate investment and investment in the securities markets.
I suspected underinvoicing of sales out of Kenya, and overinvoicing
of expenses charged to Kenya, which both reduce taxable profit in Kenya.
and MNCs to formulate code of conduct for multinational corporations (MNCs) who are problem-makers, heavy risk-bearers, and who, as a compensation for bearing perceived risks, engage in tricky and speculative business dealings in order to earn abnormal profits through the techniques of transfer pricing, overinvoicing
, subcontracting, dumping of sophisticated technology without supporting local technical manpower, etc.
For his part, the Chairman of the Committee on Budgetary Control, the Liberal Italian Luigi de Magistris, is worried about the issue of "gray areas" raised by the court because "sometimes behind errors lies fraud," whether it be overinvoicing
by the recipients of funds or the non-respect of rules for calls for tender and public procurement.
Import misinvoicing has switched from underinvoicing to overinvoicing
over the last 20 years as a result of reduced import tariffs, following Mexico's accession to GATT in 1987 and to NAFTA in 1994.
13) Countervaluation is done either by the underinvoicing or overinvoicing
of product flows between these import/export businesses.
They were the object of this research on the possibility of overinvoicing
in these pledge notes.