US Tax Administration

Corruption in the tax administration is a moderate risk in the United States. Surveyed businesses report that irregular payments and bribes occasionally occur ( GCR 2015-2016 ). Complex corporate tax laws present a challenge for companies and require a high degree of vigilance ( pwc 2014 ). Business executives consider tax rates and regulations to be among the most problematic factors for conducting business in the US (GCR 2015-2016). Several US companies practice inversion, a widespread tax evasion scheme that allows companies to reincorporate abroad ( Economist , Feb. 2015). Firms should be aware of the possibility of being prosecuted in accordance with the FCPA for corruption offences committed abroad, and the corruption risk associated with reincorporation.