Underinvoicing

(redirected from Under-Invoicing)

Underinvoicing

The act or practice of stating the price of a good on an invoice as being less than the price actually paid. Underinvoicing occurs if the importer and/or exporter wish to reduce a tariff or if a buyer and/or seller wish to reduce their apparent profits so as to pay less in taxes. See also: Fraud.
References in periodicals archive ?
The LCCI Vice President Zeshan Khalil said that the government would have to weed out the menace of smuggling and under-invoicing before implementing any tax avoidance measures.
KARACHI -- To address under-invoicing of imports, Pakistan and China have reached an agreement to initiate digital exchange of trade data from April 30th, 2018.
5bn, "due to possible under-invoicing, which would mean that severe revenue losses and tax evasion are taking place.
In an undocumented economy like Pakistan, where under-invoicing property transactions are a norm and non-declaration of income is commonplace, such presumptions can be gravely misused.
In the case of imports, imposition of regulatory duties could lead to under-invoicing.
Chinese side also agreed on Electronic Data Exchange which would help reducing the chances of under-invoicing, another major concern of Pakistani industry.
would encourage the smugglers and those who believe in under-invoicing
5bn, 'due to possible under-invoicing, which would mean that severe revenue losses and tax evasion are taking place.
The gang of the accused persons is receiving funds from Pakistani agencies through hawala conduits such as accused Zahoor Ahmad Shah Watali and others and also raising funds by generating illegal profits from LoC barter trade by doing under-invoicing and cash-dealings," it alleged.
They were also under-invoicing the actual gold, copper and silver content in those shipping containers.
Pakistan Customs has completed all arrangements to launch online trade data verification to eliminate the menace of under-invoicing and plugging revenue leakages with the Chinese authorities from this month, a senior Customs official said on Thursday.
The identifiable avenues for money laundering in Grenada are drug trafficking, fraud, and under-invoicing.