710
PUBLIC LAW 91-172-DEC. 30, 1969
[83 STAT.
SEC. 902. DEDUCTIBILITY OF TREBLE DAMAGE PAYMENTS, FINES AND PENALTIES, ETC. (a)
ye^stlt^'gVs^' 26 USC 162.
162 (relating to deduction of trade or business expenses) is amended by redesignating subsection (f) as subsection (h), and by inserting after subsection (e) the following new subsections: " (f) FINES AND PENALTIES.—No deduction shall be allowed under subsection (a) for any fine or similar penalty paid to a government for the violation of any law. "(g)
15 USC' ^5^^'
TREBLE DAMAGE PAYMENTS UNDER THE ANTITRUST LAWS.—
If in a criminal proceeding a taxpayer is convicted of a violation of the antitrust laws, or his plea of guilty or nolo contendere to an indictment or information charging such a violation is entered or accepted in such a proceeding, no deduction shall be allowed under subsection (a) for two-thirds of any amount paid or incurred— "(1) on any judgment for damages entered against the taxpayer under section 4 of the Act entitled 'An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes', approved October 15, 1914 (commonly known ^^ ^^^ Clayton Act), on account of such violation or any related violation of the antitrust laws which occurred prior to the date of the final judgment of such conviction, or "(2) in settlement of any action brought under such section 4 on account of such violation or related violation. The preceding sentence shall not apply with respect to any conviction or plea before January 1, 1970, or to any conviction or plea on or after such date in a new trial following an appeal of a conviction before such date." (b) BRIBES AND ILLEGAL KICKBACKS.—Section 162(c) (relating to improper payments to certain government officials or employees) is amended to read as follows: "(c)
Ante, p. 532.
F I N E S AND PENALTIES; TREBLE DAMAGE PAYMENTS.—Section
BRIBES AND ILLEGAL KICKBACKS.— "(1) ILLEGAL PAYMENTS TO GOVERNMENT omciiLs OR EM-
PLOYEES.—No deduction shall be allowed under subsection (a) for any payment made, directly or indirectly, to an official or employee of any government, or of any agency or instrumentality of any government, if the payment constitutes an illegal bribe or kickback or, if the payment is to an official or employee of a foreign government, the payment would be unlawful under the laws of the United States if such laws were applicable to such payment and to such official or employee. The burden of proof in respect of the issue, for the purposes of this paragraph, as to whether a payment constitutes an illegal bribe or kickback (or would be unlawful under the laws of the United States) shall be upon the Secretary or his delegate to the same extent as he bears the burden of proof under section 7454 (concerning the burden of proof when the issue relates to fraud), "(2) OTHER BRIBES OR KICKBACKS.—If in a criminal proceeding a taxpayer is convicted of making a payment (other than a payment described in paragraph (1)) which is an illegal bribe or kickback, or his plea of guilty or nolo contendere to an indictment or information charging the making of such a payment is entered or accepted in such a proceeding, no deduction shall be allowed under subsection (a) on account of such payment or any related payment made prior to the date of the final judgment in such proceeding. "(3) STATUTE OF LIMITATIONS.—If a taxpayer claimed a deduction for a payment described in paragraph (2) which is disallowed
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