It is a decision that could see criminals lining up at the accountant, claiming repairs for getaway cars, dry cleaning on balaclavas and even claiming the cost of bullets.
The High Court has ruled that Frank La Rosa will not be taxed on $220,000 of drug money, because it was stolen from him at gunpoint.
Frank has made a mockery of Australia's tax laws.
"As far as I thought anything that was earned illegal was not taxable because then it becomes legal," said La Rosa.
"Are they trying to legalise the drug trade? Drug money that's basically what they're doing."
When Frank La Rosa went down for drug dealing, the Tax Department came knocking wanting its share of his estimated drug earnings for 1994, 1995 and 1996.
It was estimated to be about $400,000.
La Rosa hit back saying he had lost $220,000 in a dodgy deal and if the Tax Department wanted its money, he was claiming the loss as a deduction.
"The law stated I'm entitled to that deduction because they stated it was a business now like any business you're entitled to losses," he said.
Frank might have won this battle but the war is far from over. The Tax Office said he still owes it more than $1 million due to compound interest on the original debt racked up ten years ago.But if the Tax Department collects money from drug deals, should it be subject to proceeds of crime legislation? It is a question the Director of Public Prosecutions is yet to consider.
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