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American Rice Inc ARI a Houston based company exports rice to foreign countries including Haiti Rice Corporation of Haiti a wholly owned subsidiary of ARI was incorporated in Haiti to repres

American Rice, Inc. (ARI), a Houston-based company, exports rice to foreign countries, including Haiti. Rice Corporation of Haiti, a wholly owned subsidiary of ARI, was incorporated in Haiti to represent ARI's interests and deal with third parties there. Haiti's customs officials assess duties based on the quantity and value of rice imported into the country. Haiti also requires businesses that deliver rice there to remit an advance deposit against Haitian sales taxes, based on the value of that rice. The businesses are then given a credit for the deposit when they file their Haitian sales tax returns. David Kay and Douglas Murphy, executives of ARI, were charged with violations of the FCPA for allegedly bribing Haitian officials to accept false bills of lading that reflected total rice imports to be about one-third of actual levels so that ARI would owe less in taxes. Is this type of an arrangement a bribe? Does it violate the FCPA? [U.S. v. Kay, 359 F.3d 738 (5th Cir. 2004).]

 

(Analysis appears at the end of the chapter.)

 
 

Aug 23 2021 View more View Less

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