Germany, Where Bribery Is Tax Deductible

Guess which country permits bribes in private business to be tax-deductible? Try Germany. While rarely used--the deduction requires names to be named--the fact that bribery is legal in Germany flies in the face of its international reputation for law and order.

As corruption cases go, the ongoing Adan Opel affair is typical. Dozens of employees at the General Motors Corp. unit allegedly secured kickbacks from suppliers who help build their plants. Three executives are suspected of accepting such favors as construction work on their homes.