Does the IRS somewhat encourage dirty money to be taxed? I'm guessing they would prefer to have it highly taxed but perhaps getting some tax is second best.
In New Zealand "Income that is earned from illegal activities needs to have tax paid on
it." however they do try to deter money laundering, tax evasion and tax fraud.
In New Zealand it is getting harder to launder money because cash is not used as much as it used to be. Certainly a legitimate kebab shop should now receive the majority of their money as card payments. Few businesses here would have a majority of takings in cash.
Well yes, in the sense that Al Capone famously got nailed on not filing income taxes. But of course, if Al Capone had told the IRS that he got his money through extortion and illegal liquor, gambling and drugs or whatever it was he did then the IRS would gladly give that information to whoever was investigating him, so I don't think the IRS would profit much from it either way.
And I imagine card payments do make it harder, but the schemes just become more difficult, which might press on the margins a little. You could always buy your kebab shops overseas. Sell your drugs for Bitcoin, send the Bitcoin to Berlin, exchange them there for Euros, cash them in at your Kebab shop, and then wire them back to New Zealand, bam you're an international investor in the eyes of your government.
Just to be clear, it has been the law of the land that IRS is not allowed to share this information with criminal investigation. They realized how badly they screwed their revenue collection by “getting” Al Capone. To be clear, Tony Soprano files his taxes. It’s generally the smaller henchmen who don’t.
In New Zealand "Income that is earned from illegal activities needs to have tax paid on it." however they do try to deter money laundering, tax evasion and tax fraud.
In New Zealand it is getting harder to launder money because cash is not used as much as it used to be. Certainly a legitimate kebab shop should now receive the majority of their money as card payments. Few businesses here would have a majority of takings in cash.