As per the U.S. law and OECD convention, which of the following is most likely to be considered as a grease payment?
A. Gold Fire Inc. paid a fine of $2500 for violating the labor laws in a foreign country.
B. Gold Fire Inc. made a small payment of $20 to speed up some paperwork related to tax returns in a less developed country.
C. The proprietor of Gold Fire Inc. made payments to the Mafia as a protection against violent retribution.
D. Gold Fire Inc. gave gift vouchers to all its product wholesalers in order to promote the product.
E. Gold Fire Inc. made an unrecorded payment to one of its accountants in return for window dressing the company's accounts.
B
Both the U.S. law and OECD convention include language that allows for exceptions known as facilitating or expediting payments (also called grease payments or speed money), the purpose of which is to expedite or to secure the performance of a routine governmental action.
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