Can bribes be deducted from taxes?
In Switzerland, the tax return is due again soon. This prompted me to take a look at the latest circulars from the Federal Tax Administration. Right at the top, it was about whether bribery of public officials can be deducted from taxes. It goes into great detail about what constitutes a bribe, what benefits are allowed, and which individuals are public officials. I don't want to withhold the best parts from you, so that you also have something to laugh about and learn from.
Answer for the short readers: It is of course not allowed to deduct bribes from taxes. It's still worth reading on.
Quote 1, Local Customs: "... Local customs, on the other hand, do not constitute a justification for granting an advantage unless a particular conduct is explicitly declared permissible by local law...."
Quote 2, Examining sham transactions: "...Because bribe payments are not matched by provable consideration, sham transactions may be documented to justify such payments. In this regard, the bribe payments may be described as "service fees," "after sales tax," "agent's fees," "transportation costs," "sales compensation," "entertainment expenses," "advertising costs," or the like...."
Citation 3, No Duty to Notify Tax Authorities: "...The provisions of tax law that exclude the deductibility of bribes do not constitute a sufficient legal basis to require the tax authorities to report to the criminal authorities the cases of bribery and conferring of advantages of which the employees have become aware in the performance of their duties...."
Quote 4, and if one does want to report: "...Insofar as the cantonal law does not provide for a duty to report, but a member of a cantonal tax authority nevertheless wishes to file a report, the written consent of the superior authority is required for this (Art. 320 No. 2 StGB)...."
Hopefully you could also laugh about the bureaucracy, which is apparently necessary. Do you also know such laws or situations of excessive bureaucracy?
In case you want some more:
