Money laundering and taxation issue

Black money is a big threat for today?s states and societies. Money launderers ignore the law that is put forward to regulate social relationships therefore severing society, the state and the citizens.Black money affects macro and micro economy, financial systems and international markets in a negative way. Because such profit based activities use production factors that are being used to produce goods for the benefit of society and cause higher costs, and doesn?t directly support production facilities.With existance of black money, economic indications are distorted, the competition within the borders and state budget are affected negatively, and underground economy gets larger. Since the money gets in and out of the country at unexpected times, the stability in exchange rates and prices is harder to satisfy, therefore resulting in damages to the society and the state. Because of these reasons the lives of people are getting tougher and the trust in official entities are hurtened.The goal of this study is to identify which ways are being use to launder money by presenting cases from the world and Turkey, and to create awareness around the topic so that the big impact of money laundering on economies and on the tax income of the state are analyzed and brought to attention.