Consignments intercepted due to offenses of overinvoicing
or underinvoicing will be confiscated and punishments will be meted out to the wrongdoers.
But there is another potential driver of the sharp rise in imports: People may be overinvoicing
in order to shift money abroad.
There is no doubt that this overinvoicing
and underinvoicing has involved the country (Nigeria) in huge foreign exchange drain and losses in revenue.
First, it is widely assumed by analysts that Chinese exporters have been "overinvoicing
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.
C.D., 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.
Export misinvoicing fluctuated between underinvoicing values of $0.2 billion and overinvoicing
values of $0.7 billion, while import misinvoicing switched from underinvoicing, peaking at $1.6 billion in 1983, to recent overinvoicing--up to $3.8 billion in 2002.