Taxation of Proceeds from Illegal Activities

Abstract

The research on the taxation of proceeds from criminal/illegal activities gains particular importance due to recently announcements of Brazilian National Treasury that it would tax declared values for taking advantages of lenience agreements. Such analysis will start from the potential taxable income and the concept of taxable income adopted by Brazilian Legal System. As will be seen, such taxation is mandatory by principles and rules that guide income taxation. Moreover, in case of forfeiture, tax refund derives from legality.