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Thread: Agency owner charged back taxes and fines + escorts must charge taxes!!

  1. #1
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    Agency owner charged back taxes and fines + escorts must charge taxes!!

    More than $1M owed for 3+ yrs of unreported income.
    Plus, escorts are legally required to charge sales taxes. Will they hand out official GST/PST (TPS/TVQ) receipts?
    If one gets a receipt, can it be claimed as a business expense - something like "client entertainment" maybe...?


    http://www.lapresse.ca/actualites/ju...-du-quebec.php

  2. #2
    Lily from Montreal
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    You are wrong,only people making over 30 000 a year as freelancer shall we say ,needs to charge GST etc...as long as you keep the income below that no need to charge the taxes...

  3. #3
    Gorgeous ladies Fanatic
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    Hello all

    Its actually nothing new Gst and Pst is the responsibility of the agency obviously if it's a Indy she is responsible too.
    Net worth factor ,will your declared revenue support it .


    Good luck all


    Cheers


    Booker

  4. #4
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    If it's illegal to obtain money from the sexual service of others, wouldn't that make the tax collector criminals? Since taxes are collected for the benefits of the citizens, then every citizen is a criminal living off the avails.
    “Truth, Justice, Freedom, Reasonably Priced Love.”

  5. #5
    Is this a way to make it less profitable to make under the table money?

  6. #6
    Gorgeous ladies Fanatic
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    Quote Originally Posted by Siocnarf View Post
    If it's illegal to obtain money from the sexual service of others, wouldn't that make the tax collector criminals? Since taxes are collected for the benefits of the citizens, then every citizen is a criminal living off the avails.
    Since when tax collectors are criminal?
    Their is more ridiculous situations then this GST /PST was charged on the sells of drug .
    Arbitrary assessments where made and seizures of wealth where made
    Old history. ........


    Cheers



    Booker

  7. #7
    Quote Originally Posted by Siocnarf View Post
    If it's illegal to obtain money from the sexual service of others, wouldn't that make the tax collector criminals? Since taxes are collected for the benefits of the citizens, then every citizen is a criminal living off the avails.
    Yes. It would.

  8. #8
    Quote Originally Posted by BookerL View Post
    Since when tax collectors are criminal?

    Booker
    Really? A direct tax on your income has always been known as a form of slavery. The income tax was supposed to be a "temporary WW2 measure."

  9. #9
    technically, an honest drug dealer who would fill a tax report, revenue canada would not advise LE... strange world

  10. #10
    Gorgeous ladies Fanatic
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    Quote Originally Posted by blkone View Post
    Really? A direct tax on your income has always been known as a form of slavery. The income tax was supposed to be a "temporary WW2 measure."
    Sorry WW1 1917 and yes a war effort that stayed ......


    Cheers


    Booker

  11. #11
    Quote Originally Posted by S.S neo View Post
    technically, an honest drug dealer who would fill a tax report, revenue canada would not advise LE... strange world
    I have never looked at Canadian law on this, but that is how it works in the U.S. And I presume Canada is the same. In the US, all income is taxable whether earned legally or illegally, and since the right to remain silent and not testify against yourself is forfeited when a tax return is signed, the IRS and state revenue departments are strictly prohibited from informing other law enforcement agencies about the existence of illegal activities. I have never read about a violation of this rule. The tax collectors simply do not care about how the income was earned. The opposite is not true, though. If a law enforcement agency (other than tax collectors) discover that an illegal activity has occurred, they are free to inform the IRS or the state tax department to determine if taxes have been paid. In a cash business, often the taxes were not paid, and in fact many of the prosecutions of escort services and even independent escorts end up being guilty pleas for tax evasion and other financial crimes instead of "sex crimes".

    The US tax laws are not particularly hostile to prostitution and sex work, although most escorts list modeling as her occupation for privacy purposes. An interesting series of cases allowed most strip joints to avoid issuing tax forms to most strippers in the US. In this scenario, the stripper earns most of her income directly from the customers by doing private dances and pays a set amount to the strip joint that is unrelated to how much she earns from customers. The strip joint cannot issue her tax reporting forms because they simply do not know how much she earned.

    The US tax laws are unfortunately quite hostile to drug dealers and deny them a deduction for most of the drugs that they purchase for resale. I think this is true at the federal level even for legal marijuana sales and one of the complaints from the legal marijuana outlets is that they pay truly outrageous taxes on their revenue. One of the worries about true legalization and regulation of "vice" activities in the US is that it would be the ultimate shakedown - those legislators who disapprove would take the opportunity to levy outrageous taxes on the activity.

  12. #12
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    Quebec Court rules that prostitution revenue is taxable

    by Paul Delean, Montreal Gazette

    Revenue generated from prostitution is taxable, a Quebec Court judge has reconfirmed in a judgment upholding $1.2 million in Revenue Quebec assessments against Michel Catudal, the former operator of local male-escort agency Hot Boys Enr.

    Catudal, who actually worked on contract for Revenue Quebec in the 1980s doing tax verification, appealed the assessments, claiming responsibility for collecting the 15-per-cent sales tax fell on the prostitutes who worked for the agency, the tax department used erroneous figures that didn’t include business costs such as salary, automobile and “bad debts,” and the proceeds of crime aren’t taxable in any event.

    Revenue Quebec said jurisprudence clearly establishes that the proceeds of crime are taxable, sales tax did apply and it was his job to collect it, and stiff penalties were justified because Catudal consciously omitted declaring all his income.

    Court was told Catudal declared annual earnings that averaged $13,261 between 1995 and 2005 while actually receiving more than $600,000 as his cut from Hot Boys Enr., a business that collected more than $2.4 million over that period.

    He was arrested by Montreal police in 2005 and they seized the company’s books and the client list, which had 2,900 names. Dates, services, preferences and transaction costs were listed for each name. Revenue Quebec said it arrived at its numbers by adding up those amounts, attributing a quarter of the gross revenue to Catudel.

    It found he under-reported his business income by $470,860. Penalties and interest brought the total up to $1.2 million.

    Convicted of procuring and sexual exploitation in 2006, Catudal received a 40-month sentence. He also surrendered to the government $224,700 in cash found in his sister’s safety-deposit box.

    Quebec Court Judge Armando Aznar was not impressed by Catudal’s argument the money wasn’t taxable, particularly since he’d even worked for the tax department.

    “How can the plaintiff seriously declare he didn’t believe revenue from illegal sources was taxable while at the same time affirming he couldn’t declare it for fear of being arrested or charged criminally?” Judge Aznar wrote.

    “At the very least, he’s shown negligence and carelessness.”

    Judge Aznar said the Canadian and Quebec tax systems put the onus on the citizen to voluntarily declare all revenue from all sources. And revenue from illegal activity has been included for decades, he said, citing a 1928 decision pertaining to illegal alcohol.

    Prostitution revenue is taxable in Quebec

  13. #13
    Gorgeous ladies Fanatic
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    Hello Doc

    The principal of this judgement is so much old news it's learning that is celebrated in Canada on the 25 of December .
    I statted in escort business of 20 years and I had been aware of that fact long before I started.
    As I have saying so many times the net worth of a person either phisical or moral must sustained by is tax assessment if not is wealth will be confiscated
    In case of money from crimE reverse onus does apply it is not the crown to prove the money is from illicit sources but to the defendant to prove that the money is legitimate
    C-36 has nothing to do with this .
    I have been dealing with forensic tax lawyers for over 20 years
    criminal lawyers know nothing aboUT neither civil lawyers
    it is simply their field of expertise
    To each is own but when discussing a complex matter ,the garbage picker even he has a place in sociaty is not necessarily
    the right source to tall about escorting revenues and ramifications with all the laws that applies
    Merry Christmas
    Good luck all

    Booker

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