Usually for money laundering, so potentially tax evasion yes. The value of a piece of art doesn’t have to make perfect sense because it is subjectively determined. Certain patterns and outliers can raise attention, but it has been commonly used for money laundering for centuries.
These days trading cards, comics, and other graded memorabilia have developed a similar market.
Think of the art pieces as placeholders. It tells the system that you spent a million on art, instead of telling the system that you spent a million on illegal things.
A front for tax evasion?
Usually for money laundering, so potentially tax evasion yes. The value of a piece of art doesn’t have to make perfect sense because it is subjectively determined. Certain patterns and outliers can raise attention, but it has been commonly used for money laundering for centuries.
These days trading cards, comics, and other graded memorabilia have developed a similar market.
Think of the art pieces as placeholders. It tells the system that you spent a million on art, instead of telling the system that you spent a million on illegal things.