I know of examples from El Salvador, but couldn't find good info on their tax laws in Spanish. This report mentions that extortion rackets are so pervasive that

I know of examples from El Salvador, but couldn't find good info on their tax laws in Spanish. This report mentions that extortion rackets are so pervasive that larger companies hire full time negotiators to manage their bribes, and have it built into their business models. No matter how you codify it, or whether or not you really call them officially "tax deductible", they are in fact a real operating cost that an American business doesn't ever have to consider but a third world one does, and it drives up cost for the end consumer. Extortion is mainly demanded from businesses, but local residents may also have to pay “taxes” or renta to access their homes. No business sector is spared, and goods and professional services may be demanded instead of, or in addition to money. Large businesses and transport operators have dedicated employees to negotiate extortion fees, which are built into >their financial models. Implicit risk starts as soon as someone is targeted to pay, and it rises if they are unable to pay or the renta charged increases. Those who refuse to pay are killed. https://www.internal-displacement.org/sites/default/files/inline-files/201809-el-salvador-an-atomised-crisis-en.pdf https://www.internal-displacement.org/sites/default/files/in...