Would be even interesting to learn, how the deals go for our Balkan neighbours.
For example, in Ukraine, such schemes are commonly used for tax evasion purposes.
The most common scenarios are:
1. Employee's salaries being paid "in cash" – so the employer does not pay any income taxes, holiday compensations, etc.
- The big enterprises being split into small ones.
The income tax for small companies is much less than for big ones, so many employers demand their employees to register the company for their own when hiring.
So in this case, instead of having 1 company with 100 employees, you have 100 one person companies.
- The transactions are being registered only "in cash", so the business declares the less revenue and pays less taxes.
There are some more schemes, such as:
– declaring commercial goods as humanitarian ones;
– llegal import of excise goods.
But usually they are not common, because of being strictly controlled – you need to have a good relationship with governmental agencies to have acces to that.