Professional Documents
Culture Documents
2) Corrupt Intent:
3) Payment:
Recipient:
Foreign official, political party, party official, candidate for political office Not only those of foreign governments & public international organizations, but also foreign government-controlled entities
5)
Business Purpose:
To assist the firm in obtaining or retaining business
Copyright(c) 2012 Dr. Chase C. Rhee 4
Barred from doing business with Federal Government Ineligible to receive export licenses Illegal payments are not tax-deductible expenses
Copyright(c) 2012 Dr. Chase C. Rhee 6
Antiboycott Laws
Two antiboycott laws
Ribicoff Amendment to the 1976 Tax Reform Act (TRA): Does not prohibit conduct but denies tax benefits-foreign tax credit: Not covered here 1977 Amendment to Export Administration Act (EAA): Does prohibit some conducts of exporters and facilitators
Only EAA Antiboycott law is covered in this chapter
Copyright(c) 2012 Dr. Chase C. Rhee 11
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Prohibits Banks from Implementing letters of credit which contain prohibited boycott terms and conditions
Copyright(c) 2012 Dr. Chase C. Rhee 13
Most members of Arab League, except Egypt and Jordan, boycott goods and service from Israel.
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Denial or suspension of export privileges Fines of up to $11,000 per violation, and/or Exclusion from practice Up to$50,000 or 5 times the value of exports
involved, which is greater 5 years imprisonment or both
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Criminal penalty: