''Caixa 2'' ( , "cash box 2") is a term used in Brazil to refer to illegal bookkeeping practices that hide financial transactions from authorities.

Tax evasion

''Caixa dois'' includes methods to evade taxes by misrepresenting income. They include parallel bookkeeping, in which accounts declared to tax authorities are manipulated down in value to reduce tax burden. The difference between declared income and that actually received is said to have gone to "cashbox two". Mechanisms for manipulation include failing to invoice, or documenting different financial amounts or goods and services than in transactions that actually occurred.

Hiding illegal or unpopular transactions

''Caixa dois'' practices may also be used by larger businesses or public entities to disguise the source of or the use of funds. For example, a

slush fund A slush fund is a fund or account used for miscellaneous income and expenses, particularly when these are corrupt or illegal. Such funds may be kept hidden and maintained separately from money that is used for legitimate purposes. Slush funds m ...

may be used to hide payments for illegal services such as bribes to win contracts or access to privileged information to which the payee is not entitled.

Legal aspects

In Brazil ''caixa dois'' crimes that involve

money laundering Money laundering is the process of illegally concealing the origin of money obtained from illicit activities (often known as dirty money) such as drug trafficking, sex work, terrorism, corruption, and embezzlement, and converting the funds i ...

organized crime Organized crime is a category of transnational organized crime, transnational, national, or local group of centralized enterprises run to engage in illegal activity, most commonly for profit. While organized crime is generally thought of as a f ...

are liable to trial at the Supreme Federal Court, the country's highest court of law.

''Saco azul''

In Portugal is a term used to refer to the same concept as ''caixa dois''.

References

External links