How to write off escort services?

Brill

Well-known member
Jun 29, 2008
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I think it's immoral and deceitful to write-off Leaf tickets as "entertainment" for your client.
 

Aardvark154

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Jan 19, 2006
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Here is a quick quote of the last sentence of paragraph 19.:

However, payments to what are sometimes called
"escort services" for illicit services of a personal nature are never
considered to be deductible outlays.


The link to the IT is here:

http://www.cra-arc.gc.ca/E/pub/tp/it518r/it518r-e.txt

As I previously said, an IT is not considered the law. It only interprets it from CRA's perspective. If the Income Tax Act doesn't specifically say or imply it, it can be attacked. But that costs money for legal representation. (Also, what Oagre said).
Generally Judges give a fair amount of deference to them as well. Not always, but generally.
 

poker

Everyone's hero's, tell everyone's lies.
Jun 1, 2006
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Please PM
Not a bad idea.... I'll bet our PM has a freakin ton of ways to write off his SP services.... let us know what he tells you! :p

Cheers!
 

Brill

Well-known member
Jun 29, 2008
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No it's not. It is perfectly legal. Who do you think own most of the seats at the ACC? Corporations!

Because it is part pleasure, the government only allows half of the outlay as a deduction.

Our competitors have Leaf tickets, so it is vital. They are an excellent way to treat clients.

The Leafs have to declare 100% of that money as revenue, and people are employed, so society wins.
I didn't say it wasn't legal.

I think it's a sham though, it's a way for taxpayers to subsidize sports, restaurants, etc. that would collapse like a house of cards otherwise.
It's a payoff or bribe that your competitors offer so I suppose we have to match it. It's the grease that keeps the machine running smooth.

Just like Riley's "consulting fee".
 

tboy

resident smartass
Aug 18, 2001
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The IT is probably correct.

First, seeing an outcall escort is immoral, but not illegal. So actually seeing an escort should not give rise to any prohibition.

But what you would be doing be arranging escorts for clients is pimping them the girls. Indictable offence pursuant to s.212(1)(a) of the Criminal Code.

There is a general "public policy" prohibition under the law against allowing the wayward citizen to take advantage of his criminal acts in any way. For instance, no small claims court judge will ever enforce a dealer's drug collection against a defaulting junkie with a judgment or garnishment.

I would think that the IT simply applies that same general legal policy to disallow your deductions for the expenses of supplying whores for your clients.
Actually, you're not pimping because a) you're not making money off the girls b) you're not collecting money on behalf of the girls and c) you're PAYING the frickin girls...lol

I mean, how many pimps PAY their girls instead of taking money? LOL not many but maybe that's why oagre isn't a pimp, he'd go broke!!!

LOL this is one of the funniest things I've heard .....

BUT under whose judgement is seeing an escort immoral? Yours? Certainly not in the eyes of the law because it is 100% legal.

Funny how a guy comes onto and escort review site and states that seeing an escort is immoral...hmmm makes you wonder doesn't it?
 

tboy

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I didn't say it wasn't legal.

I think it's a sham though, it's a way for taxpayers to subsidize sports, restaurants, etc. that would collapse like a house of cards otherwise.
It's a payoff or bribe that your competitors offer so I suppose we have to match it. It's the grease that keeps the machine running smooth.

Just like Riley's "consulting fee".
Just goes to show you how much you DON'T know.One of the reasons that CRA allows for these types of deductions is instead of taxing the money, they allow people to DIRECTLY PUT THE MONEY BACK INTO THE ECONOMY VIA PAYING WAIT STAFF WAGES, COOKS, TAXI DRIVERS, AIRLINES, SPORTS TEAMS, USHERS, HOTEL STAFF,

But you wouldn't think of that.......
 

tboy

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I didn't say it wasn't legal.

I think it's a sham though, it's a way for taxpayers to subsidize sports, restaurants, etc. that would collapse like a house of cards otherwise.
It's a payoff or bribe that your competitors offer so I suppose we have to match it. It's the grease that keeps the machine running smooth.

Just like Riley's "consulting fee".
One other thing, do you take your personal exemptions on your income tax return? Do you deduct your RRSP contributions from your income tax?

If so, you're just as guilty as those you're condemning. The ONLY way you can comment about anything is if you take NO dedections and pay your FULL 23 or 30 percent, otherwise STFU already lol....
 

hairyfucker

Turgid Member
Sep 10, 2005
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I write SP's off under therapy, medical, entertainment, and consulting. just spread it aound and justify the concept.
 
Actually, you're not pimping because a) you're not making money off the girls b) you're not collecting money on behalf of the girls and c) you're PAYING the frickin girls...lol

I mean, how many pimps PAY their girls instead of taking money? LOL not many but maybe that's why oagre isn't a pimp, he'd go broke!!!
:confused: Follow the money...

If you are submitting seeing an escort for your own personal expense then it would be disallowed because your own personal entertainment isn't tax deductable.
If you are submitting expenses for entertaining a client you would be making money from the lady, I don't know anywhere in the law it states the lady has to provide cash at the end of the night for you to be pimping. I am not a lawyer and I welcome someones input on this but it seems to me that the money trail would be clear if you were providing escorts for clients.
Client pays you for services provided --> You pay escort for services to client.
In this situation you have acted as an agent, procuring the escort and collecting (before or after) a fee from the person you have made arrangements for such services. You are in fact providing the escort in order to secure the business transaction, that's why the entertainment expense is allowable to begin with (can't write off your social engagements) so you are in fact using the services as a way to provide income.
 

freestuff

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BUT under whose judgement is seeing an escort immoral? Yours? Certainly not in the eyes of the law because it is 100% legal.

Funny how a guy comes onto and escort review site and states that seeing an escort is immoral...hmmm makes you wonder doesn't it?
Well, escorts are not 100% legal -- i.e. incalls are not legal, bawdy houses are not legal, solicitation is not legal.

And c'mon, you don't think that prostitution is not immoral? You have no qualms whatsoever to tell other people that you use escorts? The fact that we keep it a secret (and aren't even willing to share our identity with people who do it and are understanding of our actions -- i.e. Terbites) seems to indicate to me that we don't want to people to know because we're ashamed of it. And the reason why we're ashamed is because it's something that society, friends, family frown upon. And why do they frown upon it? I guess there could be many answers but one definitely has to be morality. It just doesn't feel "right." If we took a survey and asked 100 people if they thought whether prostitution was moral or not, I would bet that at least 95 would say it's immoral. And in a society ruled by public opinion, I think that's good enough for me to deem it immoral. Is that going to stop me? No. I'm not a moral person. Just my two lousy cents.
 

tboy

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Well, escorts are not 100% legal -- i.e. incalls are not legal, bawdy houses are not legal, solicitation is not legal.

And c'mon, you don't think that prostitution is not immoral? You have no qualms whatsoever to tell other people that you use escorts? The fact that we keep it a secret (and aren't even willing to share our identity with people who do it and are understanding of our actions -- i.e. Terbites) seems to indicate to me that we don't want to people to know because we're ashamed of it. And the reason why we're ashamed is because it's something that society, friends, family frown upon. And why do they frown upon it? I guess there could be many answers but one definitely has to be morality. It just doesn't feel "right." If we took a survey and asked 100 people if they thought whether prostitution was moral or not, I would bet that at least 95 would say it's immoral. And in a society ruled by public opinion, I think that's good enough for me to deem it immoral. Is that going to stop me? No. I'm not a moral person. Just my two lousy cents.
Solicitation in private is 100% legal (phone or internet or the privacy of your own home).

Who says I don't want anyone to know? I don't hide it from anyone.....now I don't go out with a decal on the side of my truck mind you, but I also don't have a decal telling the world how many times I take a dump either.

Not ALL families, friends, and members of society frown upon it. I mean hell, just look at the number of members at terb, and how many agencies and women work it.
 
JFK - I am tax deductible, want to write me off? :p

In all seriousness, if you know one provider well enough you could probably find ways to deduct some or all of the expenses by either putting her on the payroll (you better know and trust her), by making a private deal of sorts (has she incorporated, can you provide housing, meals, in lieu of cash payment) or even arranging a charitable donation for a small % of the fee (my personal fav. and something I know many ladies have offered to regular clients).
If you don't know and trust the provider then why risk your business in the first place, is it not worth more than the few hundred (thousands?) that you are going to get as a deductible?
 

HOUND_DOG

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I knew a working girl who escorted, who set herself up as a independent contractor / office tempt. She gave receipts, accepted an a invoice for service rendered! Had her own cc machine.
Yes, but now arent you guilty of sexual harassment......?? Those human rights guys are just as bad as the auditors.
 

tboy

resident smartass
Aug 18, 2001
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:confused: Follow the money...

If you are submitting seeing an escort for your own personal expense then it would be disallowed because your own personal entertainment isn't tax deductable.
If you are submitting expenses for entertaining a client you would be making money from the lady, I don't know anywhere in the law it states the lady has to provide cash at the end of the night for you to be pimping. I am not a lawyer and I welcome someones input on this but it seems to me that the money trail would be clear if you were providing escorts for clients.
Client pays you for services provided --> You pay escort for services to client.
In this situation you have acted as an agent, procuring the escort and collecting (before or after) a fee from the person you have made arrangements for such services. You are in fact providing the escort in order to secure the business transaction, that's why the entertainment expense is allowable to begin with (can't write off your social engagements) so you are in fact using the services as a way to provide income.
Kyra: the issue has moved from the op writing off his escorting costs to whether escorting can be written off when supplied to the client.

Now I'm curious as to how you came up with that I (the arranger payee of the date for a customer of mine) would be making money "off the girl"? I'm not making money off the girl, I MIGHT (and it is a good big MIGHT there) make money if the client does business with me and if they are a regular client, the date could be viewed as a reward for being a long term client. In this case it is COSTING me money not me making money (because the cost of the date would eat into my profit).

As for "a way of providing income", not really. If anything they are a way to reward someone who has done business with me in the past or to garner income in the future (that then it is still the possibility of income, not real income as yet). If you are going to look at it in that light then every restaurant, sports event, theatre, etc should be getting a piece of my profit because they helped me garner income.

I think the term is "at arm's length" and the escort is in no way shape or form helping me make money "at arm's length".

this is all moot anyways because as shown, (thanks to the poster) escorts are not eligible for and entertainment expense......
 

tboy

resident smartass
Aug 18, 2001
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JFK - I am tax deductible, want to write me off? :p

In all seriousness, if you know one provider well enough you could probably find ways to deduct some or all of the expenses by either putting her on the payroll (you better know and trust her), by making a private deal of sorts (has she incorporated, can you provide housing, meals, in lieu of cash payment) or even arranging a charitable donation for a small % of the fee (my personal fav. and something I know many ladies have offered to regular clients).
If you don't know and trust the provider then why risk your business in the first place, is it not worth more than the few hundred (thousands?) that you are going to get as a deductible?
That's why I say pay with a CC. Everytime I have I get one for a limosine service.......(which IS expensible if that is even a word lol)....
 

afterhours

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Jul 14, 2009
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I'm curious as to how you came up with that I (the arranger payee of the date for a customer of mine) would be making money "off the girl"? I'm not making money off the girl, I MIGHT (and it is a good big MIGHT there) make money if the client does business with me and if they are a regular client, the date could be viewed as a reward for being a long term client. In this case it is COSTING me money not me making money (because the cost of the date would eat into my profit).......
seems to be a weak argument; any agency can be not profitable if their overhead is too high, but the owner still is living off the avails..there is also always an ATTEMPT to commit an offence, which may be made out quite well (to simplify evidentiary part of it, imagine that you admit discussing with your business partner how you gonna profit by way of providing your customers/suppliers/whatever with escorts).

that being said, it's hard to imagine anyone being prosecuted for that on these facts; being raped by Revenue however is a very real possibility
 

GotGusto

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Jan 18, 2009
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How do I write off when I get ripped off during an SP encounter? I just got jacked out of $160. I'm in Los Angeles right now and a skank and her big pimp just punked me out of cash a few hours ago. It's 4:46am in LA right now. It's been a crazy day/night...

I fucking hate poor people. I pray that I'm related to these guys http://www.ananova.com/news/story/sm_3584037.html?menu=
 
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