Section DB 45 — Income Tax Act 2007: Bribes paid to public officials

DB 45 Bribes paid to public officials When this section applies (1) This section applies when— (a) a person ( person A ) corruptly gives a bribe to another person; and (b) person A gives the bribe intending to influence a public official to act, or to fail to act, in their official capacity in order to— (i) obtain or retain business for person A; or (ii) obtain an improper advantage for person A in the conduct of business; and (c) the official either has or does not have the authority to act or to fail to act. No deduction (2) Person A is denied a deduction for the amount of the bribe. Exclusions (3) This section does not apply if— (a) person A gives the bribe outside New Zealand and, at the time, the bribe is not an offence under the laws of the foreign country where the principal office of the person, organisation, or other body that employs the foreign public official or for whom the official provides services is situated: (b) the bribe is given wholly or mainly to ensure or expedite the performance by a foreign public official of a routine government action when the value of the benefit is small. Some definitions (4) In this section,— benefit , foreign country , and foreign public official are defined in section 105C of the Crimes Act 1961 bribe is defined in section 99 of the Crimes Act 1961 public official means— (a) a member of Parliament or a Minister of the Crown; and (b) a judicial officer, a law enforcement officer, or an official, as those terms are defined in section 99 of the Crimes Act 1961; and (c) a foreign public official routine government action is defined in section 105C of the Crimes Act 1961. Link with subpart DA (5) This section overrides the general permission. Defined in this Act: amount , benefit , bribe , business , deduction , foreign country , foreign public official , general permission , New Zealand , pay , public official , routine government action , Compare: 2004 No 35 s DB 36