Tax policy is often used to encourage or discourage certain behaviours and countering corruption is no exception. Similarly, tax administrations are increasingly involved not only in enforcing tax measures but also in the detection of possible crimes, particularly financial crimes.
Why? Tax examiners are highly trained financial investigators and thousands of tax inspectors around the world routinely examine the financial affairs and transactions of millions of individuals, companies, partnerships, trusts, foundations and other taxpayers in the course of tax audits or other tax administration activities. They are thus ideally placed to detect and report suspicions of criminal activity such as payments of bribes to the appropriate authorities.
Countries have taken a range of tax related measures to strengthen both the legal framework and the practical administrative efforts to counter corruption. Where possible, a multi-agency approach to fight tax crimes, bribery and other crimes is an efficient option.
The combined effect of these tax policy and administration steps is increased deterrence, detection, reporting and prosecution of corrupt activities.
1. Do tax systems explicitly disallow tax deductions for bribes to public officials?
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INSTRUMENTS AND STANDARDS
TOOLS, GUIDANCE, MANUALSMoney Laundering Awareness Handbook
REVIEWS, CASE STUDIES
Country reviews and bilateral agreements on Exchange of Tax Information PortalCountry reports on implementation of the Anti-Bribery Convention