Tax Crimes and Money Laundering of Criminal Proceeds

Abstract

Tax evasion and money laundering of criminal proceeds are two phenomena that present significant challenges for modern economies and justice systems. Tax evasion involves any action aimed at avoiding tax obligations, including the inaccurate reporting of income, hiding sources of income, and utilizing complex structures to minimize taxes and duties. This results in severe consequences for public finances, reducing the resources necessary for public services and economic development. On the other hand, money laundering involves the process of transforming illegally obtained funds into visible assets, giving them a legitimate appearance. This process often includes the use of financial institutions, shell companies, and complex transactions to conceal the origin of the funds. Money laundering is a global issue that impacts the stability of financial systems and increases the risk of other crimes, such as corruption and trafficking. The fight against tax evasion and money laundering requires an integrated approach that includes enhancing transparency, strengthening legislation, and fostering international cooperation. Effective policies should involve educating taxpayers, enhancing the capacity of tax administrations, and creating robust mechanisms for penalizing violators. Only through collective commitment and a coordinated approach can there be a significant reduction in these phenomena, ensuring a fairer and more effective fiscal system.

Received: 16 January 2025 / Accepted: 14 March 2025 / Published: 25 March 2025