Comments on: Proceeds of Crime are Taxable

By: Preet

Preet — Sat, 21 Mar 2009 03:10:47 +0000

@Duncan: Thanks for sharing that insane tidbit. I don’t know what would make a drug dealer (or other criminal) decide to obey some laws, but not others…? :)

By: Duncan Erasmus

Duncan Erasmus — Fri, 20 Mar 2009 09:44:30 +0000

In New Zealand, drug dealers and their ilk can declare tax based on their illegal income, and do it without fears of repercussions as our Privacy Act protects them. Typical. At least they contribute I guess.

By: Canadian Personal Finance Blog » Blog Archive » Random Thoughts: March Hoops Madness

Fri, 20 Mar 2009 06:04:20 +0000

[...] Crime may not pay in the long run, but you had better make sure you pay taxes on what you are paid, points out Preet at Where Does All My Money go in Proceeds of Crime are Taxable. [...]

By: Preet

Preet — Mon, 16 Mar 2009 21:05:14 +0000

@ Cheap: that is exactly what I was thinking, I was going to include a line in the post wondering if you’d write off a hit, since that could be considered the cost of doing business… :P

@ Ink: And make sure to guard him well. Capone’s one mistake… (well there were plenty I suppose)

By: Patrick

Patrick — Mon, 16 Mar 2009 17:57:13 +0000

I think this is really a technicality so they can nab you on tax evasion.

By: Ink-Stained Gorilla

Ink-Stained Gorilla — Mon, 16 Mar 2009 16:17:06 +0000

The irony in this is that the CRA is really the least of your worries if you’ve been found to have a criminal enterprise.

However it does provide the CRA the ability to tax you on income if income can be proved but maybe not the illegal source of income.

Bottom line – after you’ve laundered your income sources don’t skimp on hiring a good tax-planner.

By: Mr. Cheap

Mr. Cheap — Mon, 16 Mar 2009 15:12:35 +0000

And the big question is: if proceeds of crime are taxable, can you deduct expenses like bribing police officers or purchasing firearms to protect your illicit operations? :-)