Hi Will someone explain it to me under-invoicing, how does it works with detail and with examples, please. Everyone should provide his/her view as this would help me understand in deep. Responses will be highly appreciated. Thanks
Under Invoicing
Answers
The act or practice of stating the price of a good on an invoice as being less than the price actually paid. Underinvoicing occurs if the importer and/or exporter wish to reduce a tariff or if a buyer and/or seller wish to reduce their apparent profits so as to pay less in taxes. See also: Fraud.
Filed Under:
Accounting