Today let us discuss vocabulary relating to economic frauds .
" WHITE COLLAR CRIME " is a well known expression for economic frauds. The people who commit such frauds are sophisticated. Their appearances belie their motives. They are quite polished. But then,they have criminal mind.
MISAPPROPRIATION
The verb is " to misappropriate " . It means taking away someone else's money. People working in companies, when they are dishonest try to gain money by committing some fraud.
EMBEZZLEMENT
Embezzlement means stealing. This word is also frequently used for corporate crimes. A person in some responsible position in a company misuses his position to gain pecuniary advantage for himself. That is embezzlement. The verb is " to embezzle".
DEFALCATION
This is another word for misappropriation.
BLACK MONEY
When an individual or a company keeps correct account of their income, then taxes have to be paid to the government. In order not to pay tax on the entire income, a part of income will not be shown in the accounts. In other words,there will be some unaccounted income. The unaccounted income is known as BLACK MONEY.
TAX HAVEN
When the taxes are high in one country,a company is registered in a country where taxes are low. The idea is avoidance of taxes in your country. So the other countries which help you to avoid taxes are known as TAX HAVENS.
TAX EVASION
Nobody likes to pay taxes. Even when one pays them,it is done very grudgingly. So there is always a tendency among people and companies to evade taxes. TAX EVASION is a very common economic offence.
MONEY LAUNDERING
This is an interesting expression.
When the money is illegally earned,it is black money. In order to hide the illicit origin of money, people adopt various methods to show that the money originated from legitimate business. This is called laundering. As though,by washing you make it appear legitimate.
We continue in the next post.
Sayee Jayaraman
4/03/2015
No comments:
Post a Comment