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Colorado Technical University

Working In A Foreign Country

Assignment 4

Neal Gordon

Submitted in Partial Fulfillment of the Requirements for

HIST 1605

Global History Since 1500

By

Sari Barnes

May 2012
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Abstract

It is known that there are guidelines businesses and their employees must follow in every nation

regarding the Foreign Corrupt Practices Act, taxes and proper ethics. These guidelines are

standardized across national borders so that regardless of country everyone follows and practices

the same rules.

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Working In a Foreign Country

Every country has their own policies on business and taxing. Since these policies are so

diverse, an international agreement was made to oversee the interactions of businessmen in other

countries. These international policies include agreements regarding taxes, ethics, and other

behaviors that make it easier to enforce laws across international borders. It requires and relies

on companies honesty and loyalty, even in foreign countries, such as the trust that employees of

certain companies will not bribe others in any form deemed as unethical.

Foreign Corrupt Policies Act

The Foreign Corrupt Policies Act, which was created in 1977, has made it so that it is

wrong for people to pay foreign government officials to attain or keep business advantages

(Justice.gov, 2012). Every business across the nations should be familiar with the FCPA. Federal

prosecution of violations of state commercial bribery statutes, such as mail and wire fraud, do

apply through other statutes like the U.S.C and the Travel Act (Justice.gov, 2012). It is also

required that they, the corporation involved, have accurate records to show the transactions of the

corporation and create or maintain a updated system of internal accounting controls (Justice.gov,

2012). The only form of bribery that is deemed acceptable is payment to have a transaction

expedited (Justice.gov, 2012). This is only true if all other aspects of the transaction are valid

(Justice.gov, 2012).

Taxes

As is customary, it is required that one pays taxes to the foreign country which he or she

is working and to their home country. However, if one can meet certain requirements, they will

be exempt from taxes from their home country or their taxes can be reduced. The following

requirements according to the IRS include: “A U.S. citizen who is a bona fide resident of a
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foreign country or countries for an uninterrupted period that includes an entire tax year, A U.S.

resident alien who is a citizen or national of a country with which the United States has an

income tax treaty in effect and who is a bona fide resident of a foreign country or countries for

an uninterrupted period that includes an entire tax year, A U.S. citizen or a U.S. resident alien

who is physically present in a foreign country or countries for at least 330 full days during any

period of 12 consecutive months.” (IRS.gov, 2011)

Ethics

There are general guidelines for ethics set up to satisfy both public and confidential

financial disclosure requirements and how to do these forms properly. These general ethical

guidelines would include, for example: “Employees shall act impartially and not give

preferential treatment to any private organization or individual.” Also in the guidelines is the

discouragement of employees of a company engaging in outside employment or activities,

including finding new employment while employed with their current company and actions that

conflict with official government duties (OGC.doc.gov, 2010). This guideline makes it so that

the normally ethical behavior of getting a job is unethical if done in another country while

currently employed with the country which sent them.

Conclusion

In all, these international policies and ethical guidelines make it so that there is fair play

involved with the businesses financially. It also makes it so that there is less confusion about the

proper actions while in another country. If one works for a company and they are sent to, for

example, Canada, or maybe Japan, these guidelines explain what is proper behavior and how

their taxes are paid.

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References

FOREIGN CORRUPT PRACTICES ACT. (2012). In Justice.gov. Retrieved May 13, 2012,

from http://www.justice.gov/criminal/fraud/fcpa/

Office of The Assistant General Counsel for Administration. (2010). In OGC.gov. Retrieved

May 13, 2012, from http://www.ogc.doc.gov/ethics.html

Tax Guide for U.S. Citizens and Residential Aliens Abroad. (2011). In IRS.gov. Retrieved May

13, 2012, from http://www.irs.gov/pub/irs-pdf/p54.pdf