§ Mr. Simon ThomasTo ask the Chancellor of the Exchequer how many times staff at the Inland Revenue have denied tax deductibility on payments, under section 577A of the Income and Corporation Taxes Act 1988, on the basis that the payment was(a) a suspected bribe and (b) business entertainment on an overseas contract, since November 1997. [151441]
§ Dawn PrimaroloSection 577A of the Income and Corporation Taxes Act 1988 denies, for the purpose of computing business profits, a deduction on expenditure incurred on any payment, the making of which constitutes an offence in the UK, or would do so if the payment were made in the UK. The onus is upon the taxpayer not to claim a deduction on any such expenditure. The Inland Revenue does not keep central records of expenditure disallowed from deduction by its inspectors under this provision.