3 ms·

A quick Google didn't return any books on this, unfortunately. What stood out for me was that the Canadian tax authorities didn't get to him. Maybe he payed ta

A quick Google didn't return any books on this, unfortunately. What stood out for me was that the Canadian tax authorities didn't get to him. Maybe he payed tax on his earnings; the article doesn't clarify.

toogan 3y ago
Is not paying tax on income from theft actually tax fraud? I mean, the theft itself is obviously unlawful. But perhaps you wouldn't be taxed on theft proceeds anyway, so no tax laws are broken in that case.
- thinkingemote 3y ago
  Yes income from illegal activities is still taxable income in most parts of the world. Edits, thinking about it...the article says he claimed the money was from his business. And the bank took in the money. So perhaps he did pay tax?
  - toogan 3y ago
    How do you report it? Is there a field "income from illegal activities" in the tax forms? Asking for a friend.
    - Scoundreller 3y ago
      Sometimes. When there isn’t, there’s a directive to enter it under “other income” or something similar. https://www.cbc.ca/amp/1.1407698 https://www.cbc.ca/amp/1.1407698 Depending on the seriousness of the crime, the taxman may or may not be able to share those details with law enforcement. I think the cutoff is if the sentence could be for 14 years, they can share it. When Canada legalized marijuana, they made many infractions punishable by up to 14 years. So if you sell unlawful marijuana to a minor, you could get 0 to 14 years in prison. As a result, many illegal marijuana sellers will require ID to avoid this (dunno if they’re paying taxes or not, but makes sense to care about this if they are).
- renewiltord 3y ago
  https://www.irs.gov/publications/p525#en_US_2022_publink1000229557 https://www.irs.gov/publications/p525#en_US_2022_publink1000... For the US, yes.
- forinti 3y ago
  Even if it weren't, I'd suppose that the CRA would want to know how he came about the money in order to attest if it was really exempt.
- dennis_jeeves2 3y ago
  >Is not paying tax on income from theft actually tax fraud? Well tax on income is theft ( my opinion). So tax on theft income would be theft on theft. Life sure is complicated ;)
rocqua 3y ago
Generally the end goal of money laundering is to have the money be taxed. Because at that point the money looks very legitimate, and a big part of the government (the tax office) stops trying to catch you.

toogan 3y ago

Is not paying tax on income from theft actually tax fraud? I mean, the theft itself is obviously unlawful. But perhaps you wouldn't be taxed on theft proceeds anyway, so no tax laws are broken in that case.

thinkingemote 3y ago
Yes income from illegal activities is still taxable income in most parts of the world. Edits, thinking about it...the article says he claimed the money was from his business. And the bank took in the money. So perhaps he did pay tax?
- toogan 3y ago
  How do you report it? Is there a field "income from illegal activities" in the tax forms? Asking for a friend.
  - Scoundreller 3y ago
    Sometimes. When there isn’t, there’s a directive to enter it under “other income” or something similar. https://www.cbc.ca/amp/1.1407698 https://www.cbc.ca/amp/1.1407698 Depending on the seriousness of the crime, the taxman may or may not be able to share those details with law enforcement. I think the cutoff is if the sentence could be for 14 years, they can share it. When Canada legalized marijuana, they made many infractions punishable by up to 14 years. So if you sell unlawful marijuana to a minor, you could get 0 to 14 years in prison. As a result, many illegal marijuana sellers will require ID to avoid this (dunno if they’re paying taxes or not, but makes sense to care about this if they are).
renewiltord 3y ago
https://www.irs.gov/publications/p525#en_US_2022_publink1000229557 https://www.irs.gov/publications/p525#en_US_2022_publink1000... For the US, yes.
forinti 3y ago
Even if it weren't, I'd suppose that the CRA would want to know how he came about the money in order to attest if it was really exempt.
dennis_jeeves2 3y ago
>Is not paying tax on income from theft actually tax fraud? Well tax on income is theft ( my opinion). So tax on theft income would be theft on theft. Life sure is complicated ;)

rocqua 3y ago

Generally the end goal of money laundering is to have the money be taxed. Because at that point the money looks very legitimate, and a big part of the government (the tax office) stops trying to catch you.