A government press release stated that the aim of the new rules is to prevent the legalization
of illegal incomes, terrorism financing and the rapid growth of weapons of mass destruction.
But you can not register a guy from the street who pays you (and additionally if the flat is state owned, collecting money from somebody for living there would be
totally illegal income).
The fact that you have income not included in any other part of the return (
illegal income goes under «other income») doesn't imply you've committed a crime — lots of people have other income.
The only thing that has changed is that Capone can now
claim illegal income in a section of the tax form for just that purpose.
Hence, citizens and legal entities can get involved in illegal operations, including laundering
of illegal income and terrorism financing», reads a press release from Russian central bank.
Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C - EZ (Form 1040) if from your self - employment activity.
The second option is that these people might be able to afford rent but they have some form of
illegal income that they are hiding with this ruse.