Taxing the untouchables who profit from organised crime

Abstract

Examines the use of taxation as an alternative means of bringing otherwise untouchable criminals to justice and putting their businesses out of action, focusing on Australia and the USA as countries which have achieved success through innovative use of taxation laws. Looks at the blind eye that the UK Inland Revenue has historically turned towards taxing illicit income, and recent reforms in the shape of the Proceeds of Crime Bill Part VI. Details the pioneering work of the US Internal Revenue Service’s Criminal Investigation Division, beginning in 1920 and continued by Senator Kefauver and Attorney‐General Robert Kennedy, with the war on drugs ongoing today; criminal tax weapons include proven tax deficiency and wilfulness, while civil tax weapons include income reconstruction, deficiency determinations, and jeopardy and termination assessments. Moves on to Australia’s Woodward, Williams and Costigan Royal Commissions, Special Prosecutor Robert Redlich, the National Crime Authority, and the Swordfish task force; criminal tax weapons of the Australian Tax Office include public fraud offences, while civil tax weapons include information‐gathering powers, default assessment, tax collection powers and procedures.

Citation

Lusty, D. (2003), "Taxing the untouchables who profit from organised crime", Journal of Financial Crime, Vol. 10 No. 3, pp. 209-228. https://doi.org/10.1108/13590790310808808