Aspects of the Taxation of Unlawful Acts

Abstract

This article aims to examine the taxation of unlawful acts, particularly the possibility of such taxation within the legal system and the extent of its potential application. The study adopts a methodology based on extensive doctrinal research addressing the various positions on the subject, with due consideration of established case law. In this regard, the research finds that the prevailing doctrine and case law admit the taxation of unlawful acts, provided that the illegality lies at the periphery of the taxable event. Accordingly, a moderate approach is adopted, as opposed to unrestricted taxation. The study also concludes that the criminal implications of taxing unlawful acts do not violate the principle nemo tenetur se detegere, as requiring an offender to declare and pay taxes arising from unlawful activities does not constitute self-incrimination.