Comments on: Let’s regularize this, shall we?

By: Nitin

Nitin — Sat, 07 Jun 2008 11:11:07 +0000

Tax laws are perhaps among the most abused ones in India. One recalls the “income tax raids” that were fairly common until mid-1990s. Some were genuine, others were used as tools to serve political ends.

Though less common, the “raid” continues to exist. One recalls how the tax authorities got interested in Mr Bachchan’s finances a couple of years ago.

By: Atanu Dey

Atanu Dey — Sat, 07 Jun 2008 10:07:58 +0000

Idlinginc, this brings to mind the fact that mafia boss Al Capone was finally imprisoned for tax evasion.

By: idlinginc

idlinginc — Fri, 06 Jun 2008 17:48:34 +0000

Not sure about India, but in US, (shameless) link below):

Taxation of illegal income in the United States

http://idlinginc.blogspot.com/2008/04/taxation-of-illegal-income-in-united.html

“The Supreme Court held that an embezzler was required to include his ill-gotten gains in his “gross income” for Federal income tax purposes.

While embezzlers, thieves, and the like are forced to report their ill-gotten gains as income for tax purposes, they may also take deductions for costs relating to criminal activity.

No business deduction is allowed “for any payment made, directly or indirectly, to an official or employee of any government [ . . . ] if the payment constitutes an illegal bribe or kickback”