Following a tax audit, your company’s subsidiary in a foreign country has received a reassessment notice. There are solid arguments for challenging the proposed tax adjustment, and the issue is under discussion with the tax authorities.
However, the tax auditor proposes a discharge or settlement, in return for the payment of a “kickback”.
Companies must address tax management in their anti-corruption programme, in the context of their particular risk exposure.
Additional, practical safeguards should be considered to mitigate the misuse of tax management as a form of corruption, including:
A tax inspector asks for a “kickback” in exchange for granting a discharge or accepting a settlement in a tax dispute
[RESISIT, Scenario 14]
Professionals as intermediaries
[TI UK HTB, Page 25]