4 ms·

Because people are getting away with ignoring the law, and in turn that makes bad laws more transparent, which in turn give people even more incentives to bribe

Because people are getting away with ignoring the law, and in turn that makes bad laws more transparent, which in turn give people even more incentives to bribe their way out of situations. Bribes are also tax-exempt.

cardiffspaceman 7y ago
In the USA the bribe revenue would not be tax-exempt. Failing to pay tax on it would be another infraction.
- Phrodo_00 7y ago
  Well, they're practically tax exempt, then. It's not like you're adding a bribes line on your tax report.
- mrep 7y ago
  And? INAL but I believe taking bribes is worse legally than not paying taxes so if you are willing to do the former, then why does the latter really matter? If you are going to take bribes, you are obviously not going to report it for fear of that second infraction because the first one would be worse and thus you wouldn't take the bribe in the first place if the latter infraction scared you.
  - trazire 7y ago
    It's kind of an "on paper" crime, a la Al Capone. You'll get caught quicker if you have a manual audit after paying bribes. The IRS keeps your returns private, for the most part, and if you don't pay you could have 10 years tacked on.
buckminster 7y ago
> Bribes are also tax-exempt It's not a terrible idea. I heard that post-war Germany had a massive corruption problem so they made bribing legal (but not bribe taking) and bribes tax-exempt. So everyone declared their bribes on their tax returns, the bribees were discouraged (or prosecuted) and the problem was solved. But this only works if you pursue the bribe takers.
- bklaasen 7y ago
  Fascinating. "See Implementing the 1996 OECD Recommendation on the Tax Deductibility of Bribes to Foreign Public Officials, OECD (May 26, 1997) (Report by the Committee on Fiscal Affairs ("CFA") to the OECD Council at Ministerial Level) [hereinafter Implementation of Tax Deductibility Recommendation] (describing current member state practices regarding the tax treatment of overseas bribes). Attitudes of OECD Member countries concerning the deductibility of bribes to foreign officials vary greatly. See id. at 7. The laws vary accordingly but in most countries, bribes across borders are deductible as business expenses. See id. at 7-8; M. Javade Chaudri, OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (Conference on Corruption, American University, Washington College of Law. April 6. 1998). in 2 COMBATING CORRUPTION-RECENT MULTILATERAL INITIATIVES 252 (1998) [hereinafter 2 COMBATING CORRUPTION I (on file with author) (summarizing and analyzing the OECD Convention, listing the signatories to its provisions, and noting that foreign bribery and related tax-deductibility is an accepted German business practice). The OECD Member countries are: Australia, Austria, Belgium. Canada, Czech Republic, Denmark, Finland. France. Germany. Greece. Hungary. Iceland, Ireland, Italy, Japan, Luxembourg, Mexico, Netherlands. New Zealand, Norway, Poland, Portugal, South Korea, Spain. Sweden. Switzerland. Turkey. United Kingdom, United States. See id. at 261." http://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?article=1315&context=auilr&sa=U&ved=2ahUKEwi-pYGl_c_iAhW4RhUIHQGfA00QFjAJegQIBRAB&usg=AOvVaw0qRAOdEjw074lCye44qCmO http://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?a... (PDF)

cardiffspaceman 7y ago

In the USA the bribe revenue would not be tax-exempt. Failing to pay tax on it would be another infraction.

Phrodo_00 7y ago
Well, they're practically tax exempt, then. It's not like you're adding a bribes line on your tax report.
mrep 7y ago
And? INAL but I believe taking bribes is worse legally than not paying taxes so if you are willing to do the former, then why does the latter really matter? If you are going to take bribes, you are obviously not going to report it for fear of that second infraction because the first one would be worse and thus you wouldn't take the bribe in the first place if the latter infraction scared you.
- trazire 7y ago
  It's kind of an "on paper" crime, a la Al Capone. You'll get caught quicker if you have a manual audit after paying bribes. The IRS keeps your returns private, for the most part, and if you don't pay you could have 10 years tacked on.

buckminster 7y ago

> Bribes are also tax-exempt It's not a terrible idea. I heard that post-war Germany had a massive corruption problem so they made bribing legal (but not bribe taking) and bribes tax-exempt. So everyone declared their bribes on their tax returns, the bribees were discouraged (or prosecuted) and the problem was solved. But this only works if you pursue the bribe takers.

bklaasen 7y ago
Fascinating. "See Implementing the 1996 OECD Recommendation on the Tax Deductibility of Bribes to Foreign Public Officials, OECD (May 26, 1997) (Report by the Committee on Fiscal Affairs ("CFA") to the OECD Council at Ministerial Level) [hereinafter Implementation of Tax Deductibility Recommendation] (describing current member state practices regarding the tax treatment of overseas bribes). Attitudes of OECD Member countries concerning the deductibility of bribes to foreign officials vary greatly. See id. at 7. The laws vary accordingly but in most countries, bribes across borders are deductible as business expenses. See id. at 7-8; M. Javade Chaudri, OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (Conference on Corruption, American University, Washington College of Law. April 6. 1998). in 2 COMBATING CORRUPTION-RECENT MULTILATERAL INITIATIVES 252 (1998) [hereinafter 2 COMBATING CORRUPTION I (on file with author) (summarizing and analyzing the OECD Convention, listing the signatories to its provisions, and noting that foreign bribery and related tax-deductibility is an accepted German business practice). The OECD Member countries are: Australia, Austria, Belgium. Canada, Czech Republic, Denmark, Finland. France. Germany. Greece. Hungary. Iceland, Ireland, Italy, Japan, Luxembourg, Mexico, Netherlands. New Zealand, Norway, Poland, Portugal, South Korea, Spain. Sweden. Switzerland. Turkey. United Kingdom, United States. See id. at 261." http://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?article=1315&context=auilr&sa=U&ved=2ahUKEwi-pYGl_c_iAhW4RhUIHQGfA00QFjAJegQIBRAB&usg=AOvVaw0qRAOdEjw074lCye44qCmO http://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?a... (PDF)