Imran's offshore company

[Shamraz_Khan]

Re: Imran’s offshore company

@SID_NY

There is already a huge hue&cry on social and electronic media about it. But my question remains the same as day 1: How come making offshore companies at first place a crime? Most of the businesses do it. So unless there is a proof of money laundering I dont see a legal issue.
Even Trump has many companies listed in Panama leaks as the offshore and I’m yet to hear a single word in american media about it.

Well, lot of times these are shell companies that are used to evade taxes & are used to make “black money” white. For example, lets say you rubbed and bank & got 10 million dollars & you’re keeping that in a pillow, but you want to buy a house using that money. However, if you do that tax authorities will have questions eg where you got the money and if you paid tx on it, etc. So, to make that black money white you send that money from Pakistan to Bahamas using hawala system to a shell investment company. Once money is there you can legally bring that money back to Pakistan as investment w/o paying tax on it. So, you go from thief to an investor. That is one example, but not all offshore companies are used for money laundering & they do have legitimate purpose, too.