Regulators hit companies with a record amount of fines and penalties last year for everything from Foreign Corrupt Practices Act violations to money laundering. Not all of it, however, will take a toll on the bottom lines of perpetrators.
That’s because some companies are exploiting a longstanding loophole used to claim tax deductions for punitive fines after they reach settlements with government agencies, such as the Securities and Exchange Commission or the Department of Justice. The SEC and the Justice Department are now looking to close such loopholes.
