Taxing crime: The application of Ethiopian income tax laws to incomes from illegal activities

Taxing crime: The application of Ethiopian income tax laws to incomes from illegal activities

One of the most important issues that have to be raised in relation to taxation of incomes is the taxation of incomes generated from illegal activities. Are they taxed according to the law? The writer has argued that incomes from illegal sources shall be taxed according to schedule C or alternatively it can also be taxed using schedule D. As a taxpayer these persons should be afforded the same tax benefit during declarations and in terms of deducting the deductible costs. However, in order to facilitate tax payment the tax authority has to make amendments in its declaration forms.