Russia to Officials: Bribes Aren't Tax Deductible

Arms exporters, commodity companies told to take note
By Kevin Spak,  Newser Staff
Posted Sep 4, 2012 8:48 AM CDT
Sorry, Russians, bribes are not a viable business expense.   (Shutterstock)

(Newser) – Sorry, shady Russian arms dealers: Bribes may be the cost of doing business in some parts of the world, but they aren't actually a legitimate business expense. You might think that would go without saying, but apparently it doesn't, because Russia's Foreign Ministry has released a statement telling officials that "expenses incurred while committing legal violations, including bribes or kickbacks, are not recognized for the purposes of tax assessment," the Telegraph reports.

Bribes are most common for Russian commodity companies and the aforementioned arms dealers, tax officials told one Russian newspaper. Russian companies are some of the most notorious payola practitioners in the world, according to Transparency International, but the Telegraph notes that Russia recently joined the Anti-Bribery Convention.

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