ACCT 485 Lecture Notes - Lecture 15: Foreign Corrupt Practices Act, Payment, De Minimis
26 Sep 2016
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Acct 485 day 15: rules for specific deduction and loss items. Expenses contrary to public policy: bribes and kickbacks. To be disallowed, must be illegal under federal or state law and subject the payor to a criminal penalty or the loss of a license or privilege to engage in a trade or business. If the feds or state do not go to look at it then it can be deductible. If foreign, disallowed only if violates u. s. foreign corrupt practices act of 1977. U. s. foreign corrupt practices act of 1977: list of countries where bribes and kickbacks are not allowed. Legal bribe or kickback: construction company told - look if you get this done ahead of time we will give you ,000: fines and penalties. Paid to a government for violation of the law. Includes speeding tickets: two-thirds of damages paid due to violation of anti-trust laws are not deductible, legal expenses incurred in defense of civil or criminal penalties.
