[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR10.23]

[Page 295]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 10_COMMERCIAL BRIBERY--Table of Contents
 
                      Subpart C_Commercial Bribery
 
Sec.  10.23  Gifts or payments to wholesalers.

    Although industry members are not prohibited from offering or giving 
money or other things of value to a wholesale entity (i.e., the 
corporation, partnership, or individual who owns the business), the 
wholesaler will be considered as acting as a mere conduit between its 
officers, employees, or representatives and the industry member, if:
    (a) There is an agreement or understanding, implied or explicit, 
that the money or thing of value will be passed on to the officers, 
employees, or representatives, or
    (b) It is obvious by the very nature of the item given (such as a 
free trip) that a pass through to the officers, employees, or 
representatives is clearly contemplated, or
    (c) The records of the recipient wholesaler do not accurately 
reflect such money or item as an asset or the wholesale entity, thus 
being subject to all ensuing tax consequences as distinguished from the 
receipt of the money or item as a personal asset of an officer, 
employee, or representative.