U.S. companies, on the stock exchange, and increasingly, those in other nations, are required to comply with the U.S. Department of Justice and the Securities and Exchange Commission, Foreign Corrupt Practices Act ("FCCPA"). This is an anti-bribery law. Sometimes businesses can give gifts so that contracts move faster or are given to one company instead of another. When a company works in another nation someone in that ministry may present the opportunity to accept a gift. For example items that are subject to a country's customs regulations may pass through based on a gift.
The FCPA requires that these business control measures in place to comply with the laws and all accounting be accurate. Obviously this means no falsifying of books and records, but it also means that the gifts are to be reported in the U.S. If the are not the consequences are not only hefty penalties, but could mean jail time. Reports are made by
employees and others and these “Whistle Blowers” are a protected class.
Bribery and corruption are not tolerated in business. Be transparent and walk in integrity and in business report it all so there is no question! It really just makes sense because when companies pay bribes to win business and or contracts the long-term end result leads to negative results like unstable or unaffordable prices for others who may attempt to do business into that country or the contract may be voided.
During this season of gift giving gifts only give with a true heart and get in the habit of report all gifts to your accountant.
We at TEIL Firms wish you a safe and joyous season and a Partridge in a Pear Tree.