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Thursday, March 29, 2007

Court Gives Tax Break to Drug Runner

Interesting story from the Associated Press:  Court Gives Tax Break to Drug Runner:

A Dutch court has added a new item to the list of activities eligible for tax relief — drug running. Judges in the central city of Arnhem recently declared that a professional fisherman convicted of smuggling drugs could deduct the cost of buying and shipping hashish to the Netherlands from his income on his tax return, national daily De Telegraaf reported Tuesday. ...

The Telegraaf reported that the smuggler, whose identity was not released, appealed to the Arnhem court after being slapped with a euro3.3 million ($4.4 million) tax bill. The court ruled that because he had only been convicted of drug running and not trading in drugs he could deduct the cost of buying and transporting the drugs on his tax form. That cut his tax bill to euro1.8 ($2.4 million) — a saving of euro1.5 million ($2 million). Under Dutch law, marijuana and hashish are illegal but police don't fine smokers for possession of less than five grams (one-sixth of an ounce) or prosecute for possession of less than 30 grams (one ounce). Authorities look the other way regarding the open sale of cannabis in designated "coffee shops." But growers are subject to raids and prosecution, meaning the officially tolerated shop owners have no legal way to purchase their best-selling product.

The case isn't the first time a court's ruling on taxes has raised Dutch eyebrows. In 2005, judges in the northern city of Leeuwarden ruled that witches can write off the cost of schooling in witchcraft against their tax bills if it increases the likelihood of employment and personal income [blogged here].

(Hat Tip:  Jim Maule.)

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