In computing business tax profits, no deduction is allowed for a payment ‘the making of the payment constitutes a criminal offence’ (ITTOIA 2005, s. 55(1)(a)).
The wording of the legislation ignores the fact that the UK lacks a unitary criminal law system. Scotland’s system, for example, has always been separate from that of any other part of the UK. A payment which may be lawfully made in one of the UK countries (e.g. Scotland) may be criminally prohibited in another (e.g. Northern Ireland). However, the legality of the payment must surely be judged by sole reference to the laws of the part of the UK where it was made.