Thursday, May 25, 2006

Bribes and kickback’s tax deductable

For all you Americans out there, don’t try this at home, at least until it has been proved through the high court.
In Australia, a signatory to the OECD Anti-Bribery Convention, businesses who engage in bribery in foreign trade are open to litigation. Although it is not clear if the Federal law would hold, State laws are effective.
At the same time, the Australian Tax Office currently deems such ‘expenses’ as a claimable cost.
I guess it is a bit like the old prostitution laws, the act was outlawed but the income was required to be reported for tax assessment.

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