Illegal incomes, legal taxes? (tradition, Article)

[kadzbiz]

Gangland boss Tony Mokbel has finally been captured in Greece. His extradition is being sought by Victoria Police here in Australia. He's already been convicted and sentenced (in his absence) to 12 years gaol on drug charges and now will be facing a murder charge.


That's all by the by. Crook does wrong, crook gets caught, crook goes to gaol. What is amazing to me is what I heard on this morning's news. The Australian Taxation Office is after $4 Million (Aus) from Mokbel for unpaid taxes on the money that he is supposed to have made in his illegal drug trade over the past few years. Can you believe that? It's not a legitimate occupation, so how can you justify getting taxes from it? Isn't that putting the Government into a position of profiting from crime, which is illegal in this country? And, if they can justify it somehow, surely Mr Mokbel would have some pretty legitimate tax claims eh? Hmm, fees for hitmen, drug trafficking expenses, his escape to Greece, etc.....I reckon he could just about claim a loss. Maybe he'll even get a tax refund? Ha!

[Terrywoodenpic]

The uk is even more stringent.... The money derived from crime and all you own can be forfeit to the state. You can then be Taxed on it ... Income does not only mean legal income.

Even Prostitutes are liable to income tax on their illegal earning.

[doppelgänger]

Al Capone was ultimately imprisoned for tax evasion.

[kadzbiz]

Originally Posted by Terrywoodenpic

The uk is even more stringent.... The money derived from crime and all you own can be forfeit to the state. You can then be Taxed on it ... Income does not only mean legal income. Even Prostitutes are liable to income tax on their illegal earning.

Here also they have a lot of their property seized and forfeited if it's been obtained thru purchase with ill gotten gains. Now, I'm not fully aware of the legalities of prostitution, but here, being a "sex worker" is a legitimate occupation.

Originally Posted by doppelgänger

Al Capone was ultimately imprisoned for tax evasion.

That's true, but wasn't the source of the suggested income legitimate, I'm not sure.

[Shadow Wolf]

Al Capone was ultimately imprisoned for tax evasion.

Yes, he did say something along the lines "Money under the table is not taxable" or something like that. And he was busted for tax evasion.

[doppelgänger]

Originally Posted by kadzbiz

That's true, but wasn't the source of the suggested income legitimate, I'm not sure.

I don't think so. Capone's money was from bootlegging, gambling and prostitution, all of which were illegal.

"I make my money by supplying a public demand. If I break the law, my customers who number hundreds of the best people in Chicago, are as guilty as I am. The only difference is that I sell and they buy. Everybody calls me a racketeer. I call myself a businessman."

[doppelgänger]

Also, I'm not a tax lawyer, so I had to look it up, but:

According to the Internal Revenue Code, income derived from any source, including illegally earned income, is subject to income tax.

http://www.irs.gov/compliance/enforc...125269,00.html

[kadzbiz]

Well that solves that. Good work. Frubals to you.