Section 145 | Exclusion of expenses for illegal payments, fines and penalties

(1)Where the underlying profits of a member of a multinational group reflects—

(a)expenses accrued for illegal payments (for example, bribes or kickbacks), or

(b)expenses accrued for fines or penalties of 50,000 euros or more,

those profits are to be adjusted to exclude those expenses.

(2)For the purposes of subsection (1)(a), a payment is illegal if the making of that payment is, or forms part of conduct which is, an offence under the law of—

(a)the United Kingdom,

(b)the territory of the member, or

(c)the territory of the ultimate parent.

(3)For the purposes of subsection (1)(b), where more than one fine or penalty is accrued in respect of the same conduct, or for continuing conduct, those fines or penalties are to be aggregated.