Published on 01 Sep 08
by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
In April 2005, s 26-54 of the Income Tax Assessment Act 1997 was enacted, effectively denying tax deductions for convicted criminals. This event was brought about by a decision in a case, La Rosa, which allowed a convicted criminal to claim a tax deduction for money stolen during a drug deal. It was claimed that the provision was enacted on public policy grounds, however a closer analysis shows that the provision was more likely enacted as a political measure and ignores important principles underlying the tax system. It is concluded that the Government should not have intervened and that the provision should be repealed.
Current at 20 June 2016