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 ?

Consignments intercepted due to offenses of overinvoicing or underinvoicing will be confiscated and punishments will be meted out to the wrongdoers.

Text of Budget Speech

There is no doubt that this overinvoicing and underinvoicing has involved the country (Nigeria) in huge foreign exchange drain and losses in revenue.

FINANCIAL MANAGEMENT ANALYSIS OF MONEY LAUNDERING THROUGH FRAUDULENT LCs, LOUs, LOCs AND SWIFT : CASE STUDIES OF JOHNSON MATTHEY BANK: JMB (U.K.) AND INDIA'S MAJOR COMMERCIAL BANK

" Our investigations indicate that at least 60 traders could be involved in over and underinvoicing of goods," special director, NIA, Anil Shukla said.

Slush money from cross- border barter funding separatists

He said steps should be taken to address the issues of underinvoicing on Chinese imports.

ICCI welcomes start of Chinese trade convoys to Pakistan

He said, "Steps should be taken to address the issues of underinvoicing on Chinese imports."

ICCI welcomes start of Chinese trade convoys through CPEC

(1997) Determinants of Underinvoicing of Imports in Pakistan.

Reverse capital flight to Pakistan: analysis of evidence

The underinvoicing of imports and exports by Dominican businesses is a relatively common practice for those seeking to avoid taxes and customs fees.

Dominican Republic

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.

Originators now face SARs reporting: starting in August, non-bank mortgage originators will have to comply with tough federal rules designed to combat money laundering. Filing suspicious activity reports (SARs) will become part of their routines

I suspected underinvoicing of sales out of Kenya, and overinvoicing of expenses charged to Kenya, which both reduce taxable profit in Kenya.

Kenya's cut flower tax swindle

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.

Smuggling illegal versus legal goods across the U.S.-Mexico border: a structural equations model approach

By comparing the extent of misreporting on quantities versus values, we were further able to determine whether evasion occurred through underinvoicing quantities, prices, or relabeling high tariff goods as low tariff ones.

Measuring tariff evasion and smuggling

(13) Countervaluation is done either by the underinvoicing or overinvoicing of product flows between these import/export businesses.

Hawala, money laundering, and terrorism finance: micro-lending as an end to illicit remittance