Tax Office guidelines for understanding and dealing with the bribery of Australian and foreign public officials

Examination plan and compliance checks

During the planning phase and conduct of audits of tax returns, the team leader of the tax officer and the tax officers themselves should be alert to situations that lend themselves to the creation of illegal or improper payments, such as bribes. When deemed appropriate and necessary, the audit plans should include consideration of the following compliance checks:

• examination of internal audit reports, minutes and related working papers to determine if any reference is made to the creation of any secret or hidden corporate fund
• review copies of taxpayer's reports submitted to the Australian Securities and Investment Commission, financial institutions, insurers and other regulatory bodies, and
• give appropriate consideration to any foreign entities, operations, contractual or pricing arrangements, fund transfers, and use of tax haven locations.

Sections within Record keeping and audit techniques

• Ensure due diligence in record keeping, corroboration and security
• Examination plan and compliance checks
• Methods for accumulating evidence particularly relevant to identifying bribes
• Information gathering - access, notices and interviewing
• Evaluating the taxpayer's internal controls
• Slush funds