MIAMI ― A new Florida International University professor’s study has found that corporate tax evasion and money laundering cost the U.S. some $2.3 trillion in lost taxes.
The just-released study of federal customs data by FIU business professor John Zdanowicz indicates U.S. companies used false invoices to hide the true value of imported and exported goods from 2003 to 2014.
The study used a software program to reveal inflated prices on imports and unusually low prices on exports. The difference results in tax savings or money shifted into offshore accounts.
An FIU release says China had the highest amount of estimated U.S. tax losses due to abnormal trade pricing in 2014. Trade with other countries that resulted in large U.S. tax losses included Canada, Mexico, Japan and Germany.