escorts and tax evasion

[train]

Well I was honest and put escort/webdesigner on my previous tax returns and now they are asking for receipts for different things, which I submitted to them, but have not heard back in months. Not sure if this is cosidered an audit? But don't think, I am gonna be so honest in the future.

Lisa

It is a desk review . Not hearing back from them is probably a good sign .....if they were going to reassess you they would be faster . Same thing happened to me....they asked for receipts for some alternative medicine for a dependent of mine . Within six weeks they wrote and disallowed them .I am appealing because they were perscribed by an MD .

 

[gala]

Do you think they would be stupid enough to admit they cheat?

Sheesh....

No, I'm just curious to know what... uhh... their friend does. If CCRA wanted to audit all the escorts in Toronto they wouldn't have too much trouble doing a little search to find out who they were.

Mostly I was curious to know how widespread charges of tax evasion are against escorts, if it's common or not.

 

[duMaurierguy]

Revenue Canada...

has something that is referred to as a lifestyle audit. Simply, if you are living beyond your stated income, you can be in deep trouble. They search all and, I do mean all your records. Your life is turned upside down. Assets can be taken, penalties assessed and possibly jail time (in extreme circumstances but, it does happen). It happened to a good client of mine. Thankfully, he had a good lawyer and only had to hand over several investment properties.

Moral of the story. Make sure a REASONABLE income is declared based on your lifestyle and keep detailed records to back it up.

 

[Vanessa Valentine]

Are there any tax lawyers on the board? Please pm me if you can...

Vanessa

 

[rdhaired_vixen]

miss valentine...perhaps Public relations manager..
or I am a governmental agency like IRS or CRA .. i screw people for a living.. l

 

[Vanessa Valentine]

miss valentine...perhaps Public relations manager..
or I am a governmental agency like IRS or CRA .. i screw people for a living.. l

OMG, not a bad idea, lol.

Vanessa

 

[Mudd Stuffin]

To keep the trail as clean as possible, pay for necesities (and business expenses) with your credit card/bank card; pay for the lifestyle stuff via cash - ie. less traceable.

If you are topping out over 30k (quite likely); then you should probably get a GST number (very easy - just phone CCRA). Then you can remit monthly/quarterly or annually.

If you are doing cross-border services, just make sure not to have too much cash when coming back to Canada.

One dancer I know got a rude awakening when CCRA came calling a few years ago.

As long as you don't have any major assets ie. expensive cars/homes, I don't think they will target you, but be prepred just in case.

Just some tips to think about.