Make sense?

Came across this question in my taxation tutorial...

Syarikat East-West Leisure Sdn. Bhd operated a club, providing recreational facilities for a fee. As part of its activities, it also operated pinball machines in addition to renting out a room for an hourly rent to people who wished to gamble. On October 1, 2005, the government instructed the club to cease operating its pinball machines and to stop letting out the room for gambling purposes. The government had declared these activities illegal. The company continued to carry on those activities up to the end of December 2005.

Required : State with reasons, whether the company's income from the pinball machines and the rent from the gambling room from October 1 to December 31, 2005 are liable to income tax.

My initial response to this question was, since the company is involved in illegal activities(from 1 Oct to 31 Dec), of course the company would not record the transactions in the journals, right? (If you rob a bank, you would not go and tell people you rob the bank!) If the company is not recording any transactions in the journals, how are the Inland Revenue Board(IRB) going to trace that amount of money?

Say that if IRB really get to know that the company is involved in illegal activities, the IRB should lodge a police report and the proceeds from the illegal activity should be forfeited.

However the tutor response was, the fact that the income is legal or illegal is not relevant. Since the pinball machine and the renting out of room for gambling is part of the company's normal course of a business(providing recreational facilities), those income are liable to tax. Make any sense to you??

Should I rob one million from a bank(illegal activity), is that income liable to income tax?? Taking the approach from the tutor, whether the income is legal or illegal is irrelevant. Therefore I would need to pay a tax of 28% to the IRB. Could I keep the remaining??