Companies make charitable donations to entities registered with the tax authorities as charities. When a donation is scrutinised during an audit its clear what

Companies make charitable donations to entities registered with the tax authorities as charities. When a donation is scrutinised during an audit its clear what its for, based on the receiving entity. A random payment to a person looks like a bribe or some suspicious activity when its not in direct exchange for goods or services. This will require an explanation to the person conducting the audit at the very least.