APPLICATION OF THE PECUNIA NON OLET PRINCIPLE TO INCOME FROM GAMBLIG

Abstract

Introduction: In this context, this paper aims to analyze the applicability of the “Pecúnia Non Olet” principle to gambling winnings. Pecúnia Non Olet, from Latin, translates as money without smell and derives from an expression used to justify the Roman Emperor Vespasian when charging a tax on urine. The principle of “money without smell” will guide the theme of this dissertation, where it will be argued that the origin of gambling money should not play any role in the acceptance or use of the money. Objective: To analyze the application of the pecúnia non olet principle in the Brazilian legal-tax system, focusing on the feasibility of taxing income from gambling, considering the national normative, jurisprudential and economic reality. Conclusion: The current research aimed, mainly, to examine how the pecúnia non olet principle operates in Brazilian tax law, especially in gambling winnings, at a time of heated debate about its monitoring and taxes. After the theoretical analysis, the laws, and court cases, it was seen that, even though there is no clear law, the principle appears in Brazilian tax practice, in a hidden way, especially when it is accepted to tax illegal activities.