Money Laundering & Tax Evasion
The most ardently debated issue regarding money laundering is about tax.
Some consider money laundering is solely not paying taxes, and money laundering is tax crime. On the other hand, some think that tax evasion is criminal only in some particular occasions.
When talking about taxation one should not take it in general but as attached to one or another particular jurisdiction. Also, it is important that there is a basic principle of international law – one country does not enforce the tax laws of another.
Also, tax evasion is not really money laundering, but annually billions of untaxed money are laundered through banking and non-banking financial institutions to make the money appear legitimate. Lawfully received money cannot be laundered. Untaxed money can. So, money laundering is a result of tax evasion. The US Internal Revenue Service considers money laundering to be tax evasion in progress.