The Resource Taxation of illegal activities part 2 : the case of consumption taxes

Taxation of illegal activities part 2 : the case of consumption taxes

Label
Taxation of illegal activities part 2 : the case of consumption taxes
Title
Taxation of illegal activities part 2 : the case of consumption taxes
Creator
Subject
Language
eng
Summary
Under the tax systems of some countries (Australia, US, Canada, EU's member States) it has been long considered that the proceeds of criminal activities should be subject to taxes in the same manner as proceeds from legal ones. In all of these systems, the fact that the proceeds are derived from an illegal activity does not prevent its taxation (pecunia non olet). That includes, also, the case of illegal transactions. Therefore, under the consumption taxes of these countries something that is done illegally may still constitute a supply. However, while some countries consider that all transactions have to be taxed, regardless of the legal or illegal status of the activity, some others have a more limited approach. That is the case of EU's members States, where the European Court of Justice (ECJ) has held that the principle of fiscal neutrality precludes a generalised differentiation between legal and illegal transactions except where, because of the special characteristics of certain products, all competition between a legal economic sector and an illegal sector is precluded. As specified by the ECJ case law, wholly forbidden activities (such as drug dealing) are not subject to VAT in EU member States, irrespective of the fact that the criminal property has been seized or not. The ECJ also considers that the illegal nature of a transaction subject to VAT does not hinder the effectiveness of related exemption. Regarding consumption taxes, the latter brings some issues related, for example, to the tax liability of some illegal activities, the right to deduct or the seizure of the goods. Moreover, this situation could lead to some mismatches from the point of view of international taxation that may be interesting to discuss
http://library.link/vocab/creatorName
Antón Antón, A
Geographic coverage
International
Index
no index present
Language note
English
Literary form
non fiction
Series statement
IFA Research Paper
http://library.link/vocab/subjectName
  • illegal activity
  • consumption tax
  • ECJ case law
Label
Taxation of illegal activities part 2 : the case of consumption taxes
Instantiates
Publication
Extent
68 p.
Label
Taxation of illegal activities part 2 : the case of consumption taxes
Publication
Extent
68 p.

Library Locations

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