The role of tax examiners and tax auditors

Tax examiners and auditors around the world are highly trained and skilled specialists, who in the course of their normal activities routinely examine the financial affairs, transactions and records of millions of individuals, companies and other taxpayers. However, they may be unaware of what the typical indicators of possible bribery or corruption are, as well as their own role in referring their suspicions to the appropriate law enforcement authority or public prosecutor where they have identified possible bribery or corruption. Furthermore, tax examiners and auditors should be reminded that bribes and other payments linked to corruption are not tax deductible and the proceeds of corruption are often taxable income or gains under domestic law. While the aim of this Handbook is to raise awareness among tax examiners and auditors of issues surrounding bribery and corruption, it is not meant to replace domestic laws, policies and procedures. Tax examiners and auditors must, at all times, carry out their duties in accordance with the laws, policies and procedures which apply in their country. Therefore, in ensuring that their country’s domestic tax law is properly applied, tax examiners and auditors should be aware of their role in detecting bribery and corruption and thus alert to indicators of possible bribery or corruption.