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1) You are selling equipment & machinery to a country. Your customer owns his company 100%. He asks you to over-invoice your exports. He says he is trying to build a nest egg outside his country. He requests that you deposit the excess amount he will pay you under your invoice to his bank account in Switzerland. What are the issues here? What will you do? Discuss logically and clearly.
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2) You are selling kitchen utensils to a country. Your customer states that the import duties and taxes in his country are very high. He suggests paying you 60% cash by wire transfer in advance and asks you to under-invoice him by billing him only 40% in your invoice. What are the issues here? What would you do? Discuss logically and clearly.
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https://brainmass.com/business/business-management/global-business-289017
Solution Preview
- There are a lot of ethical issues here. First, you should never over-invoice. You are in effect assisting the customer do tax evasion by hiding his cash for him. If this is legal to do in his country, then he could do it …
