Chinese Shell Corporations Evade Taxes In Ecuador

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At least seven Chinese companies the Ecuadorean government hired for public works projects in the construction, mining, telecommunications, and oil exploitation sectors made payments to companies the Ecuadorean Internal Revenue Service (SRI, in Spanish) considers shell corporations.

This information is the result of an investigation by Ecuadorean daily El Universo, which compared SRI’s shell corporation database from April to tax returns of Chinese companies the country hired between 2010-2018.

According to Jorge Rodríguez, an Ecuadorean economist and a representative of the country’s National Anti-corruption Commission, the use of shell corporations is long-standing in Ecuador. He said these companies are usually hired to launder money, simulate expenses, artificially lower their earnings, and pay kickbacks to authorities for acts of corruption.

Read the original article here: dialogo-americas.com


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