Taxes Consolidation Act 1997 section 83A

Expenditure involving crime

Section 83A denies a tax deduction for any payment that constitutes a criminal offence, whether made in Ireland or abroad, and prevents such payments from being included in expenses of management.

• No deduction is allowed under Schedule D for expenditure on any payment that constitutes a criminal offence under Irish law, regardless of whether a conviction has taken place.
• Payments made outside Ireland are also non-deductible if the payment, had it been made in Ireland, would constitute a criminal offence under Irish law.
• These non-deductible payments cannot be included in computing expenses of management for the purposes of the Tax Acts.
• The taxpayer bears responsibility under self-assessment for determining whether a payment falls within these provisions and must be able to justify any deduction claimed if audited.