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 It is concluded that the Government should not have intervened and that the provision should be repealed.