I heard of another similar scheme that's being used oftem by big corps these days.

Problem:

Company A wants to reduce it's taxes. It currently buys a item for $10 and sells for $100. It's taxed heavily on a large profit margin of $90.

Solution:

Company A sets up a small shop in a country that does not allow the US into their banking system such as Argentina in South America. That will be called Company B but owned by Company A.

Company B does all the purchasing for Company A and acts as a middle man. Company B will buy an item for $10 and then sells it to Company A for $90.

Company A now has documents stating it only made a small profit because the item cost $90 and sold it retail for $100. Only a $10 profit. The company now pays much less taxes saving millions.