Quora Answer: Is Money Laundering Not the Exact Opposite of Tax Evasion?

The following is my answer to a Quora question: “Is money laundering not the exact opposite of tax evasion?”

Money laundering is the act of concealing the origins of funds acquired through illegal means by placement, layering and integration into the financial system.  Tax evasion is the act of not paying taxes illegally, or underpaying taxes through false declaration of asset worth or hiding ownership.  Whilst they are not the same thing, there is a relationship.  When assets and funds are undeclared so as to avoid taxes, the owner of these assets and funds still need to be able to enjoy them.  That means justifying their existence.  This is where money laundering comes into the picture.