This is a quote form one of the judgements given in India

"The income tax Act considers the income earned legally as well as tainted income alike. There is nothing like an illegal income so far as the Tax Collector is concerned. Even if the assessee was prosecuted by Law Enforcing authorities for commission of offence, the income earned by the offender still would be an income liable for assessment. It is not a defence in such cases that the State is also becoming a party to the illegal act by sharing the booty." (https://taxguru.in/income-tax/illegal-income-is-taxable-madras-high-court.html)

Illegal income is taxable in India , so is in other jurisdictions across the world . Everyone wants a piece of the pie whether its tainted or not. However, its a step forward.