Bribery and corruption

Denying tax deductibility of bribes


The vast majority of Parties to the The OECD Anti-Bribery Convention now prohibit companies from taking bribes to foreign public officials as tax deductions. This is due to the success of the 1996 Recommendation on the Tax Deductibility of Bribes, which aimed to put an end to this practice. This sends a clear message that bribery will no longer be treated as a regular business expense – it is a criminal offence, subject to serious penalties.

The OECD Bribery Awareness Handbook for Tax Examiners helps tax examiners identify suspicious payments likely to be bribes, so that law enforcement authorities can be notified. The Handbook also helps countries to strengthen their internal audit guidelines on bribery awareness and detection.


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