| dc.description.abstract | Illicit Financial Flows (IFFs) are the movements of money or capital from one
country to another that are illegally earned, acquired, transferred or utilized.
Capital being transferred is considered illicit when: First, the act of transferring it across countries is illegal
(Money Laundering, Cash Smuggling). Second, it is the result of an illegal act (Drug Trade, Tax Evasion).
Lastly, if it is used to finance an illegal activity (Organized Crime, Terrorism).
While IFFs are a result of illegal activities, some activities contributing to the practice
may circumvent that definition as they are not technically illegal but illicit. This means
that although the activities are legal, they are not ethical or moral. Tax avoidance is
one such example. Here multi-national corporations use the tax code to facilitate
the process of paying as little tax as possible, to the detriment of the communities
in which they generate revenue. It is seen as unethical because these corporations
that are already incredibly wealthy do not pay their fair share of taxes while poorer
people living in those communities have to pay taxes due them, no matter the cost.
Because governments lose revenue by multinationals not paying their fair share, the
next best option is rigorous regressive taxation that impacts poor and vulnerable
groups the most. | en_US |
