The Corporate Sector

Under-reporting of profits—by showing fictitious expenses—helps evade corporate income tax; and under-reporting of production, excise; the unreported production is sold off in cash. The black money generated inflates promoters' personal (illegal) wealth or flows as bribes and kickbacks to officials and politicians as speed money, contract commissions and election funds. There is a thriving business in raising fictitious bills on companies.The companies pay by cheque and the money, minus a 5-10 per cent "conversion charge", is then routed back to the companies in cash. White has been turned to black.