You missed a key point: I am not an agency owner, I am an owner of a company that makes widgets and I'm paying for an escort for one of my valued current or future customers.....(that's the hypothetical scenario anyways).
How to write off escort services?
- Thread starter gollumtroll
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I think under RevCan's rules, a meal must be swallowed in order to qualify. As such, DATY wouldn't qualify.
Tell the government that you took out an option on a lush rainforest property for the purpose of prospecting for oil. You had to bear the cost of sinking a pump into the property but there was no oil to be found. Since you found no oil on the lush property, your option expired and the owner of the property made you return it to its previous state because you you left a gaping open hole after you left and it was accesable to children.
Absolutely, the same for the IRS and Inland Revenue. I'm amazed (unless this is one of those theoretical discussions) that some folks here want to live so dangerously.
But now you are getting into the realm of tax fraud and criminal penalties, not just repayment and administrative penalties.
There are things like "new office chairs" "computer repairs" "software" If you know an SP you could buy her expensive things she might need like a new laptop, if the audit comes, the laptop slipped out of your hand into a puddle. you still have all the paperwork, for it. you had a networking issue and you hired a guy from craigslist to fix it, he seems to have moved. There is also getting a massage, as a medical expense. If you're going to do it, it's best to spread it around as much as you can. make sure to take advantage of say rebates buy a new lazer printer for the office and it costs $400 but don't mention the mail in rebate for $150. either way you do it, it's risky as hell. it might be an idea to take an accountant out for lunch make a joke about hookers then talk about deduction idea's.
If they have the brains God gave an anteater, they will say what has already been said here - what you are proposing is illegal and I would be libel myself for criminal charges if I assisted you in a violation of tax law. Or the polite version ‘wouldn't that be wonderful if we could, but you can't so don't try it.’
at the end of the day you can write off whatever you like, you're only a thief if you get caught.
I'd suggest reading sections 212(1)(a) and 212(1)(h) of the Criminal Code, as both would appear to apply to the hypothetical scenario, and both come with a 10 year jail sentence.
To quote the Dirty Harry movies "you've got to ask yourself one question: Do I feel lucky? Well, do ya. . ."
Most people who cheat on taxes doen't do it just once and they don't do it for $20.
Everytime some asks me this question I have concluded the following.
1. They are gay.
2. They are cheap, they think the world owe's them alot, low self-esteem and doesn't want to get laid with an escort/MP but has no choice to get laid with one because they cannot pick up any decent looking girl for them just to date. Basically they can't find a date and want a 10 girl but only if the taxpayer will pay for it.
NO.
Take a look at the bottom of paragraph 19 of the IT from CRA.
http://www.cra-arc.gc.ca/E/pub/tp/it518r/it518r-e.txt
"payments to what are sometimes called "escort services" for illicit services of a personal nature are never considered to be deductible outlays.
In this case the word “illicit” is superfluous to the meaning of the sentence. You are not going to get very far other than spending a good bit of money to loose in court by arguing that the meaning of "illicit" in the IT is synonymous with illegal and that since outcall is not illegal. . .
Just a note: CRA and the Legal communities often work independant of each other. I know in many cases, CRA doesn't report what would obviously be funds garnered from illegal activities to the police/rcmp. Their main concern is collecting their 30%. If you do that, their happy.
What I mean is they may deam something illicit or illegal even if it isn't illegal in a criminal sense.
Which brings up an interesting argument: who makes the judgement as to what is illicit or not? Should an action or object be judged on puritanical values? So, a gift to your church is fine but a visit to an escort isn't?
Its not deductible, period. However trying to hide the fees under diffirent catigory is taking a risk of beeing questioned about it by CRA, even under a corporation. I dont advise my clients to do something foolish like this and claim such expense of a questionable nature, if paying for the service in cash forget about it, also you need to keep the real name of the recepient, which i guess its not easy to get from SP. If the SP thinks or knows that you will deduct the fees she gets from you, most propable she will not see you again becaus she may got audited for undisclosed income, and thats a big deal to deal with CRA.
Pro007
Pro007
It is funny how many people here come to ask this question per month. I even met I guy who wanted to write off diner or lunchexpense when he went out on dates with regular woman.
That was a sign of "Cheap" I laugh at the guy and told him that was a very low shallow joke.
He is still a virgin.
