Any food based retailer that is not franchised run at a loss.
Laundering money
- Thread starter Ed Barton
- Start date
I think the common source of black money in big amounts would be selling Ice
I am told that the most common way to launder is to own a business and inflate the figures, pay tax on the profit and then sell it to some poor sod on the dodgy numbers.
Tattoo parlours are a very popular choice with certain sections of the community, only tracible input is ink and the complexity of the design effects the price of the tattoo.
$100 worth of inks could be $1000s of income, declare, pay tax, now you can spend it on PPOR. Reno PPOR using half clean half dirty money then sell and you have laundered lots and lots of drug money.
I also think that the drug money being socked away will be effecting our economy, every time they arrest a big dealer they finds millions of dollars that have been removed from our economy.
Even little dealers are found with $50k-$100k stuck in ceilings and under houses, they stopped a speeding car last week and it had $70k in the boot.
Imagine if that money had been spent in a pub or club, extra staff would have been employed, extra taxes on the grog, extra GST on everything, it must be effecting the governments income.
The annoying thing is that while the druggies are avoiding tax they are usually on a benefit of some sort so honest working people cop it both ways
I am told that the most common way to launder is to own a business and inflate the figures, pay tax on the profit and then sell it to some poor sod on the dodgy numbers.
Tattoo parlours are a very popular choice with certain sections of the community, only tracible input is ink and the complexity of the design effects the price of the tattoo.
$100 worth of inks could be $1000s of income, declare, pay tax, now you can spend it on PPOR. Reno PPOR using half clean half dirty money then sell and you have laundered lots and lots of drug money.
I also think that the drug money being socked away will be effecting our economy, every time they arrest a big dealer they finds millions of dollars that have been removed from our economy.
Even little dealers are found with $50k-$100k stuck in ceilings and under houses, they stopped a speeding car last week and it had $70k in the boot.
Imagine if that money had been spent in a pub or club, extra staff would have been employed, extra taxes on the grog, extra GST on everything, it must be effecting the governments income.
The annoying thing is that while the druggies are avoiding tax they are usually on a benefit of some sort so honest working people cop it both ways
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I visited the Mint in Canberra about a year ago, they described an employee who'd been stealing $2 coins in his steel capped boots. He'd managed to smuggle out about $300k worth over time. He was eventually caught because he was trying to change large amounts of brand new $2 coins into other notes. He had barrels of it at home.
Got the devious part of me thinking. These days it would be easy to off load. Do all your grocery shopping using coins at various supermarket self serve checkouts. Use this to save your money for a year or two.
Then legitimately buy large scale cash/coin vending businesses from your savings. Vending machines, but a coin laundrette or car wash would be even better. Easy enough to churn coins through that, then claim it as legitimate income. The best part is, the businesses are shown to be very profitable on the books, so you sell them to a third party when the coins run out.
If you had $50k cash, why bother laundering it? Just use it for your groceries and fuel for a year or two. The reason most people get caught is greed. They do things outside of their normal pattern of behaviour or try to live beyond what they could possibly afford legitimately.
Got the devious part of me thinking. These days it would be easy to off load. Do all your grocery shopping using coins at various supermarket self serve checkouts. Use this to save your money for a year or two.
Then legitimately buy large scale cash/coin vending businesses from your savings. Vending machines, but a coin laundrette or car wash would be even better. Easy enough to churn coins through that, then claim it as legitimate income. The best part is, the businesses are shown to be very profitable on the books, so you sell them to a third party when the coins run out.
If you had $50k cash, why bother laundering it? Just use it for your groceries and fuel for a year or two. The reason most people get caught is greed. They do things outside of their normal pattern of behaviour or try to live beyond what they could possibly afford legitimately.
Maybe a second hand car dealers in a high flow highway site,there was a car yard strip on the inner southside in Brisbane up too a few years ago that 3 out of the total 14 car sales yards in a 2 klm;s area were run by outlaw mc ,the other ones are hydro grow shops..
Buy property for cash in countries not too worried about where the money is coming from, e.g. Chinese buying into Australia. Another way real estate is used to launder money, by under quoting a sale price and paying extra black money to the seller. The buyer then sells later on to receive the washed proceeds.
I was thinking brothels might be the way to go. I'd imagine they're almost all cash. The whole business is a bit murky - no one wants to say they're an employee or a customer. I guess that's why there's traditionally been a link between sex work and organised crime.
The ATO has quite good knowledge of what industries should earn. If you start living outside your declared income then they can look at an assessment based on asset betterment.
bakery - no of loaves per bag of flour
pub - no of beers per keg
pay cash for groceries at coles - are you using your frequent flyer card
you might oossibly be able to get away with $10-$15000 a year on spending, but if you stash it how are you going to spend it when you have $60000 tucked away.
If you do cheat the taxman with cash economy then dont let anyone else know esp your partner, lover, etc.
I had a friend who told me once hed put away $15000 a year from the takings of his business, but he couldn't get rid of it. If he bought a car or a house or a boat the tax would want to know where the money came from.
No if you want to escape paying tax do it legally, read the pieces inthe newspapers over recent days about the senate inquiry.
bakery - no of loaves per bag of flour
pub - no of beers per keg
pay cash for groceries at coles - are you using your frequent flyer card
you might oossibly be able to get away with $10-$15000 a year on spending, but if you stash it how are you going to spend it when you have $60000 tucked away.
If you do cheat the taxman with cash economy then dont let anyone else know esp your partner, lover, etc.
I had a friend who told me once hed put away $15000 a year from the takings of his business, but he couldn't get rid of it. If he bought a car or a house or a boat the tax would want to know where the money came from.
No if you want to escape paying tax do it legally, read the pieces inthe newspapers over recent days about the senate inquiry.
This thread is not about avoiding tax. It's about laundering money. To clean money you have to pay tax +tip. I'm asking about large Heisenberg laundering.
A bakery might turn over, what say $500k? You might be able to launder another, what $500k through the business? Buy the flour and throw it in the bin - but that $500k you're washing might turn into $200 after washing - I guess it's a cost of doing business.
A pub would be more up-scale, but you still wouldn't be able to launder Walter White amounts of cash.
If one already had a sizeable investment property portfolio, and used all cash to pay tradies for renos for all of them, that'd look pretty legitimate, no?
I'll put that in my next return...
Income:
mortgage broking 157k
marijuana growing 300k
meth broking 603k
Total income 1.06m
deductions
office and running 70k
grow lights and power 75k
methlamine and phosphorus 100k
protection and security 100k
Total deductions 350k
Assessable income = 710k
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