BIM43135 - Specific deductions; crime (expenditure involving): criminal payments: Prevention of Corruption Act 1906

The 1906 Act extends the earlier corruption legislation and not merely to central government. it is quite general and does not depend on a connection with a public body. Thus, for example, the 1906 Act catches a bribe to an employee of a UK trader to induce him or her to award a contract.

More precisely, the Act makes it an offence for any ’agent' corruptly to accept, obtain, agree to accept or attempt to obtain any gift or consideration as an inducement or reward for doing or forbearing to do anything in relation to the affairs or business of his ’principal'. It is similarly an offence for anyone corruptly to offer or give such a gift or consideration to an agent. An ‘agent' is any person employed by or acting for another, including a person serving the Crown, or any local or public authority, and ’principal' includes any employer.

Refer cases that appear to fall within this Act to CT&VAT (Technical) at an early stage.