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Where Taxpayers and Advisers Meet

Does the government pay

Posts: 1
Joined: Wed Sep 14, 2016 1:30 pm

Does the government pay

Postby jeza_fitz » Wed Sep 14, 2016 1:38 pm

Ok so if somebody embezels money in a company, or say, does a shady stock deal and hoodwinks people out of their money, then gets caught, and is made pay it back to the victoms.

Say the company made 10 million doing this in in that time paid 3 million in tax..

Does the government also refund the tax because obviously they took some of the profit that was made from the wrong doing ?

Posts: 7891
Joined: Wed Aug 06, 2008 3:25 pm

Re: Does the government pay

Postby maths » Wed Sep 14, 2016 4:55 pm

Profits which arise from legal or illegal activities are in principle subject to tax. Hence, no refund.

Posts: 1504
Joined: Wed Aug 06, 2008 3:55 pm

Re: Does the government pay

Postby LozaACCS » Wed Sep 14, 2016 8:40 pm

I agree that the profits are taxable, to the extent that penalties arise from the discovery of those profits then there is a double jeopardy rule (S21 of Sch 24 ITA 2007) which will generally preclude any penalties if there has been a criminal conviction.
Forgive me for saying so but from the comments you make I do not think you understand the POCA process, if you did then I believe that you would realise that the above question is almost certainly irrelevant in the circumstances you describe, the confiscation process makes a statutory assumption broadly speaking that everything you own has been obtained through illegitimate means, the onus is on you to rebutt this assumption, it is extremely difficult to do this, to see how brutal this process is see R v Steed.

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