escorts and tax evasion

[gala]

On another thread I speculated that more escorts go down for tax evasion, like Al Capone, than for any moral crime. I honestly don't know whether that is true or not.

Obviously people who work in cash businesses, whether contractors or escorts or waitresses, nearly universally lie at least a little about their income. But I suspect that many escorts actually try and hide all of their income, perhaps for fear of admitting how they earned it. Since it's legal in Canada there's really no reason not to report at least some of the income to the government. Doing so would help establish a credit record, etc., as well as obviously avoiding criminal prosecution.

But my question is this: Does anyone know of any cases of escorts being convicted of tax evasion for lying about their income on their tax return?

And while we're at it, ladies, how many of you report some or all of your income on your taxes?

 

[Ophelia Black]

Like anyone in their right mind is going to state information of that nature on a public forum in answer to a question from someone they know nothing about.

"But I suspect that many escorts actually try and hide all of their income, perhaps for fear of admitting how they earned it. Since it's legal in Canada there's really no reason not to report at least some of the income to the government."


Just for the record, the only person I know who declared herself an escort to CCRA was immediately audited.

 

[train]

do you work for CCRA?

I think if he did ( since he asked about convictions ) he would already have his answer . Convictions are a matter of public record if one knew how to access them .

 

[Yuri]

I am not really sure just what is the point behind this thread....is it really anyone's business how much a SP makes and if noted monetary considerations are declared (ie cash or gratuities)...just not anyone's business is my opinion.

 

[AcidSnow]

do you work for CCRA?

Its not CCRA (Canada Customs & Revenue Agency) any more, its CRA (Canada Revenue Agency) Paul Martins new government has done many changes including separating Revenue Canada, and Canada Customs.

just a little bit of useless information

 

[hamermill]

hmmm given the number of times I have been screwed I should list being an escort as a profession. Then perhaps I can get a tax rigtht off because I am not making any money - just getting screwed, shafted, the bone and all without any lub.

 

[Vanessa Valentine]

Inquiring minds would like to know...

When declaring income and filing taxes, what job title should a call girl use? Escort, companion, entertainer, or something more towards a lie like freelance photographer, IT consultant, freelance makeup artist, etc?

I wouldnt want to get into trouble, but I'm scared to be audited.

???

 

[George OTJ]

Its not CCRA (Canada Customs & Revenue Agency) any more, its CRA (Canada Revenue Agency) Paul Martins new government has done many changes including separating Revenue Canada, and Canada Customs.

just a little bit of useless information

LOL. I guess that means that the members of the Canada Revenue Agency policing division are CRAPers!

 

[MindJohn]

Obviously people who work in cash businesses, whether contractors or escorts or waitresses, nearly universally lie at least a little about their income. But I suspect that many escorts actually try and hide all of their income, perhaps for fear of admitting how they earned it. Since it's legal in Canada there's really no reason not to report at least some of the income to the government. Doing so would help establish a credit record, etc., as well as obviously avoiding criminal prosecution.

The letter of the law would suggest being up-front and honest about all of one's income derived through this or any other occupation. I think miss valentine should dare use the "P" word in listing her occupation.

Additionally, whether a legal trade or not, most free countries (including the USA) have laws in place which prevent law enforcement officials from using tax forms to incriminate persons based on their declared occupation. That is to say a drug dealer can pay his full load of taxes as a drug dealer and not have to worry about

a) tax evasion charges

or

b) another branch of the law being allowed to legally use or audit his tax forms for that reference.

It should be observed that Heidi Fleiss served jail time not for prostitution-related charges but for tax evasion.

 

[George OTJ]

Re: Re: escorts and tax evasion

Additionally, whether a legal trade or not, most free countries (including the USA) have laws in place which prevent law enforcement officials from using tax forms to incriminate persons based on their declared occupation. That is to say a drug dealer can pay his full load of taxes as a drug dealer and not have to worry about.

That just means that can't use it in court, but that doesn't stop them from using the information to tell them where to look - to obtain 'untainted' evidence of illegal activity.

- And I'm sure the audit Ophilia mentioned was purly a coincidence - nothing illegal about an audit and it could yield valuable infor for LE.

- And I can hardly wait till the Easter Bunny comes again this year!! He's my hero!

 

[MindJohn]

Re: Re: Re: escorts and tax evasion

That just means that can't use it in court, but that doesn't stop them from using the information to tell them where to look - to obtain 'untainted' evidence of illegal activity.

- And I'm sure the audit Ophilia mentioned was purly a coincidence - nothing illegal about an audit and it could yield valuable infor for LE.

- And I can hardly wait till the Easter Bunny comes again this year!! He's my hero!

If you are going to pretend to "quote" someone then you should probably DO exactly that:

Additionally, whether a legal trade or not, most free countries (including the USA) have laws in place which prevent law enforcement officials from using tax forms to incriminate persons based on their declared occupation. That is to say a drug dealer can pay his full load of taxes as a drug dealer and not have to worry about.

...b) another branch of the law being allowed to legally use or audit his tax forms for that reference.

 

[ceo8888ca]

What about GST?/PST ?

In Canada, you have to collect GST once your income is over $30K, whether you want to claim some of it against business expenses (condo rent, condoms, body lotions) or not.

It may complicate matters cause now you have to issue receipts to people who wants to claim it back if you charge them for it. You may, of course, absorb it yourself and include that in your services ..

As for PST, if its involving "labour", then it would apply. You can skip PST if it is "consulting". So, isn't Escorting a little bit of both ??
Umm, I think PST applies too.. Don't forget to collect that!

 

[Hotdog]

Its not CCRA (Canada Customs & Revenue Agency) any more, its CRA (Canada Revenue Agency) Paul Martins new government has done many changes including separating Revenue Canada, and Canada Customs.

just a little bit of useless information

Some more useless info - it's still called the CCRA (Canada Customs and Revenue Agency) - check the website at http://www.ccra-adrc.gc.ca/menu-e.html

 

[Ophelia Black]

The woman I spoke of felt she was audited because CCRA assumed that because she was an escort, she must have tons of undeclared income.

They red-flagged it. Think they do the same for bartenders?

 

[Vanessa Valentine]

Okay, so...

Am I a "Travel Companion/ Dinner date" or an escort? And shouldnt I be doing my taxes this month?

V.

 

[train]

Okay, so...

Am I a "Travel Companion/ Dinner date" or an escort? And shouldnt I be doing my taxes this month?

V.

Your tax return for 2003 must be filed by April 30 2004 . If audited they will examine your bank records looking for deposits so to be safe you should declare all fees deposited in your account .

I think that any occupation that derives it's income from cash ( ie no T-4 slips ) payments is bound to be a higher priority for audit .

 

[Gord's Bro]

Don't think so . . .

. . . it's really just a matter of them wanting the backup information for the numbers you quoted. I think if they WERE aduiting you, you'd be told directly. This is more like a spot check!!

GB

 

[simone]

Due to the seediness of many governments, there really is no need for you to be completely honest as to where the money comes from as long as you claim something.
Do not assume we all are hiding this under the table. Some understand we need to have something down on paper...there aren't alot of ladies here that are off the map and I doubt there will be. Some of us even provide receipts to well known clients for tax time.

 

[slyguy]

Lisa... this is not an audit, but a random check. It happens all the time. I had to submit receipts 2 years ago for a couple of expense categories.... and that was the end of it.

These random checks are done, and sometimes it uncovers a can of worms.

 

[ceo8888ca]

Not quite.. Ms Valentine and Sheik...

You are a personal consultant

What happens to the "labour" involved during the "consulting" session. Please collect and remit PST!!!