public policy limitation

public policy limitation
A concept developed by the courts precluding an income tax deduction for certain expenses related to activities deemed to be contrary to the public welfare. In this connection, Congress has incorporated into the Internal Revenue Code specific disallowance provisions covering such items as illegal bribes, kickbacks, and fines and penalties. I.R.C. 162(c) and (f)

Black's law dictionary. . 1990.

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