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DB 44: Restitution of stolen property
or “Tax deductions when returning stolen property you paid tax on”
You could also call this:

“Bribes cannot be claimed as tax deductions”

If you give, offer, or agree to give a bribe in certain situations described in the Crimes Act 1961, you can’t claim it as a tax deduction. This rule applies to the amount of the bribe you gave or offered.

There are specific parts of the Crimes Act 1961 that explain when this rule applies. These include section 101, 102(2), 103(2), 104(2), 105(2), 105C, and 105D(1).

However, this rule doesn’t apply in the situations described in section 105C(3) of the Crimes Act 1961.

The Crimes Act 1961 explains what a bribe is in section 99.

This rule is very important and overrides any other rules that might usually allow you to claim a tax deduction.

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Next up: DB 46: Avoiding, remedying, or mitigating effects of discharge of contaminant or making of noise

or “Tax deductions for pollution and noise reduction costs in business”
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Part D Deductions
Specific rules for expenditure types

DB 45Bribes

  1. This section applies when a person (person A) gives or offers, or agrees to give, a bribe in the circumstances specified in section 101, 102(2), 103(2), 104(2), 105(2), 105C, or 105D(1) of the Crimes Act 1961.

  2. Person A is denied a deduction for the amount of the bribe.

  3. This section does not apply in the circumstances specified in section 105C(3) of the Crimes Act 1961.

  4. In this section, bribe is defined in section 99 of the Crimes Act 1961.

  5. This section overrides the general permission.

    Notes

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    Notes
    • Section DB 45: replaced, on , by section 4 of the Income Tax Amendment Act 2015 (2015 No 104).