Taxes and money management seminar for sex workers

[Foxy Basket]

Hey ladies, I'm strongly considering doing a seminar next month to help sex workers learn how to file their taxes and engage in proper money management. I'm thining I would run two different workshops; the first would be a very basic "How to file your taxes" workshop, discussing the basics of filing with the CRA, mostly aimed at those who have never filed before. The second session would be a more in-depth explanation on how to manage one's finances, including registering a business, collecting HST, making investments, and securing a mortgage.

What sort of interest would there be for this kind of seminar? If it's something you're interested in, please email me, or post a reply on this thread and I'll check up on it periodically. I'm aiming for the end of March, so please let me know ASAP so I can gauge the interest and make plans accordingly.

[Alexis]

Hi..

Not to be out of sorts.. but..

Please explain to me how I can legally declare the avails of prostitution on my tax return as "avails of prostitution".

Currently it isn't allowed by revenue Canada and from a legal standpoint you cannot declare moneys you make from prostitution. The only way you can declare these monies is to declare them as a other source of income that is not from prostitution, in doing so you commit a fraudulent act of income declaration which is a federal offense.

This is currently before the Supreme Court of Canada and a decision in the case has not yet been reached. The matter before the courts would see (once it has been decided) new laws made that allow prostitutes to declare their income legally and also to write off associated cost such as security, costumes, advertising and all our other expenses.

If you tell me I can declare my prostitution money as something other than prostitution money then you are wrong legally..

Although no one is currently being charged for the fraudulent tax returns it is only because this current case is still before the courts and is challenging the law under the chatter of rights..

There's been considerable debate about this here but I assure you I am beyond well informed and know the woman (Madam De Sade) in the case first hand. I also have a lawyer (experienced in the charter and criminal law) and a CGA, although I file my own T1 and T2 returns. You cannot legally declare your prostitution money as prostitution money in Canada at this time..

I own 2 other registered companies (one a proprietorship and the other a corporation) that I do make money from so I declare that. Anything I get from my friends are gifts and it cannot be taxed nor does it need to be declared..

That's the way my accountant and lawyer see it too..

Just sayin.. Check it out with a lawyer if you don't believe me..

[chantel]

There's been considerable debate about this here but I assure you I am beyond well informed and know the woman (Madam De Sade) in the case first hand.

If your following the case you must know nikki.

[Foxy Basket]

Hey Alexis, thanks for chiming in. As you may or may not know, I'm very closely involved in the current constitutional challenge, so I'm actually speaking from a lot of experience here; you can do a google search on "Nikki Thomas, Sex Professionals of Canada" if you'd like to know my exact role in the case. All three applicants (Valerie Scott, Amy Lebovich, and Terri-Jean Bedford, who I just did a debate with last week) are members of SPOC, so I can assure you that I'm well-versed in all the associated details of the challenge; my personal lawyer is also one of those named as representing the applicants.

As we know, prostitution itself is not illegal, therefore monies raised from prostitution are "legal" as well. The onus is on law enforcement to prove that your income came as a result of breaking a law (most likely S. 210, if you're offering incalls) but the CRA does not inquire as to the legality of your income, just the legitimacy of it (which is a very different thing). Also, just to clarify, our case is currently before the Ontario Court of Appeal, and we don't expect it to go to the SCC for another two years at least (we're still waiting for the OCA to issue a ruling on the original decision from Justice Himel, which was released back in September 2010).

The only preclusion that involves Section 212( j ) is that another person cannot live on the avails of [your] prostitution. It is not illegal for a sex worker to live on their own "avails" and since prostitution itself is not illegal, it is perfectly acceptable to declare any income you make from it. In fact, the CRA encourages it, and there's even a specific industry code for it, 812900 - it falls under the "Other Personal Services" section of "Entertainment or Recreation" and specifically includes "On-line psychics, escorts, dating, party planning, personal shopping" etc. Feel free to check out your 2011 Business and Professional Income tax guide if you'd like verification of these details.

I'm afraid your lawyer and your accountant are misinformed on this issue, and you are not only allowed to declare your income, but also claim any and all expenses related to escorting and prostitution. I've spoken at length about this to a CRA representative, and I'm absolutely certain that you're not risking criminal charges for filing taxes as an escort; on the contrary, you're more at risk if you don't file your taxes in the first place.

If you'd like to have your lawyer and/or accountant contact me for more details, by all means, please feel free to do so. But I am absolutely sure that I'm on solid legal ground in offering this advice in a workshop/seminar, something I've confirmed with my own lawyers and accountant already. Thanks for raising the points though, and I'm glad I was able to clear a few things up.

Hi..

Not to be out of sorts.. but..

Please explain to me how I can legally declare the avails of prostitution on my tax return as "avails of prostitution".

Currently it isn't allowed by revenue Canada and from a legal standpoint you cannot declare moneys you make from prostitution. The only way you can declare these monies is to declare them as a other source of income that is not from prostitution, in doing so you commit a fraudulent act of income declaration which is a federal offense.

This is currently before the Supreme Court of Canada and a decision in the case has not yet been reached. The matter before the courts would see (once it has been decided) new laws made that allow prostitutes to declare their income legally and also to write off associated cost such as security, costumes, advertising and all our other expenses.

If you tell me I can declare my prostitution money as something other than prostitution money then you are wrong legally..

Although no one is currently being charged for the fraudulent tax returns it is only because this current case is still before the courts and is challenging the law under the chatter of rights..

There's been considerable debate about this here but I assure you I am beyond well informed and know the woman (Madam De Sade) in the case first hand. I also have a lawyer (experienced in the charter and criminal law) and a CGA, although I file my own T1 and T2 returns. You cannot legally declare your prostitution money as prostitution money in Canada at this time..

I own 2 other registered companies (one a proprietorship and the other a corporation) that I do make money from so I declare that. Anything I get from my friends are gifts and it cannot be taxed nor does it need to be declared..

That's the way my accountant and lawyer see it too..

Just sayin.. Check it out with a lawyer if you don't believe me..

[Alexis]

Hey Alexis, thanks for chiming in. As you may or may not know, I'm very closely involved in the current constitutional challenge, so I'm actually speaking from a lot of experience here; you can do a google search on "Nikki Thomas, Sex Professionals of Canada" if you'd like to know my exact role in the case. All three applicants (Valerie Scott, Amy Lebovich, and Terri-Jean Bedford, who I just did a debate with last week) are members of SPOC, so I can assure you that I'm well-versed in all the associated details of the challenge; my personal lawyer is also one of those named as representing the applicants.

That's Awesome..

I had no Idea you knew Terry..

ok.. well I still am not required to declare the gifts that my boyfriends and those that worship me bring to me..

I'm quite sure that you declare the income as escorting, not as a prostitution right?

Right now it doesn't sit good with most bankers when you tell them you're an escort..

Although lately mine is taking me seriously.. lol.. but then they always have I suppose..

Tax Canada is doing the same thing that cities like Calgary and Edmonton are doing and trying to make money off giving the girls a license and effectively pimping them. In doing so they themselves are taking the avails of prostitution for a profit..

I have a legitimate income that can sustain me.

Everything else is just gifts from the boys that worship me..

I couldn't imagine charging a guy HST.. lol.. and all the BS involved in collecting and remitting..

I do not keep track of gifts as they are gifts, I have too many to keep track of too..

I don't keep track of people either.. very bad idea..

So how do you deal with the fact that if you do in call you are generating the income while committing a indictable federal offense?

This makes the monies illegal and forfeit as it's the proceeds of crime..

It's the same as the money you would make selling drugs for example..

Again it's great that you're out there doing this.. I know I'll be right in there too in a few more years..

[Foxy Basket]

Well, filing taxes and purchasing a license are different things, one of them is done through a federal agency (the CRA) and the other is administered by the municipal governments... but for those who are licensed, they can claim the cost of their license on their T2125 form, so they don't have to pay income taxes on it. It's just the cost of doing business, IMHO, and I'd gladly purchase a license if it meant I could live and work in peace, without fear of prosecution or persecution. Problem is, the municipalities and the feds can't get themselves on the same page about this, otherwise it would have been resolved already.

HST is actually really easy, I just incorporate it into my hourly rate. Hence, the rate I put on my invoices is actually $265.48/hour, plus 13% HST, for a total of $300/hour. You only have to remit once a year, so I do it all at the same time when I file my T1 and other tax forms. The tricky part is claiming back the HST you've paid on your expenses, but I'm going to include that info as part of my seminar.

As for incalls being an indictable offense, the onus remains on law enforcement to conduct an investigation first, and then lay charges if they feel they are warranted; only at that point would it be viewed as "proceeds of crime" and subject to seizure. The CRA would never ask law enforcement to initiate an investigation - that's not their job. They're only here to collect taxes, and they're not fools - they realize you can pay more taxes if you're free than if you're in jail.

Regarding bankers, they didn't seem to have any problem giving me a pre-approval for a mortgage at 2.99% last month; they really only care about your business being sustainable enough so you can make your payments on time. Of course, I'm sure it didn't hurt when they called up my credit history, and saw my credit score was 794, which is 6 points short of perfect.

Anyways, thanks for the support, and if anyone else is interested in participating, please send me an email and let me know, or post a reply in this thread instead.

That's Awesome..

I had no Idea you knew Terry..

ok.. well I still am not required to declare the gifts that my boyfriends and those that worship me bring to me..

I'm quite sure that you declare the income as escorting, not as a prostitution right?

Right now it doesn't sit good with most bankers when you tell them you're an escort..

Although lately mine is taking me seriously.. lol.. but then they always have I suppose..

Tax Canada is doing the same thing that cities like Calgary and Edmonton are doing and trying to make money off giving the girls a license and effectively pimping them. In doing so they themselves are taking the avails of prostitution for a profit..

I have a legitimate income that can sustain me.

Everything else is just gifts from the boys that worship me..

I couldn't imagine charging a guy HST.. lol.. and all the BS involved in collecting and remitting..

I do not keep track of gifts as they are gifts, I have too many to keep track of too..

I don't keep track of people either.. very bad idea..

So how do you deal with the fact that if you do in call you are generating the income while committing a indictable federal offense?

This makes the monies illegal and forfeit as it's the proceeds of crime..

It's the same as the money you would make selling drugs for example..

Again it's great that you're out there doing this.. I know I'll be right in there too in a few more years..

[Pantyhose1]

Nikki, you are beautiful and smart !! That's quite a combination !!! You should definately go ahead with your plans for a seminar. Please also keep us posted on the C of A appeal.

Cheers,

[Rockheart]

Hi..

Not to be out of sorts.. but..

Please explain to me how I can legally declare the avails of prostitution on my tax return as "avails of prostitution".

Currently it isn't allowed by revenue Canada and from a legal standpoint you cannot declare moneys you make from prostitution. The only way you can declare these monies is to declare them as a other source of income that is not from prostitution, in doing so you commit a fraudulent act of income declaration which is a federal offense.

This is currently before the Supreme Court of Canada and a decision in the case has not yet been reached. The matter before the courts would see (once it has been decided) new laws made that allow prostitutes to declare their income legally and also to write off associated cost such as security, costumes, advertising and all our other expenses.

If you tell me I can declare my prostitution money as something other than prostitution money then you are wrong legally..

Although no one is currently being charged for the fraudulent tax returns it is only because this current case is still before the courts and is challenging the law under the chatter of rights..

There's been considerable debate about this here but I assure you I am beyond well informed and know the woman (Madam De Sade) in the case first hand. I also have a lawyer (experienced in the charter and criminal law) and a CGA, although I file my own T1 and T2 returns. You cannot legally declare your prostitution money as prostitution money in Canada at this time..

I own 2 other registered companies (one a proprietorship and the other a corporation) that I do make money from so I declare that. Anything I get from my friends are gifts and it cannot be taxed nor does it need to be declared..

That's the way my accountant and lawyer see it too..

Just sayin.. Check it out with a lawyer if you don't believe me..

Alexis, I have told you this before.

Revenue Canada does not care how you made the money.
If it was made in some way that is illegal that is a matter for the police.

Legality of your business and payment of taxes is not related.
You and your consultants are 100% wrong here.
Your lawyer is wrong and your accountant is wrong,
ask them if they will guarantee this for you at an audit.

You have a business and your gifts are payment period.
You advertise for customers, therefore you are a business.
Your claim of gifts would be considered Bullshit to Revenue Canada.
If you got audited, you would be in big trouble taxwise.
They go by what is reasonable, not what you say.
Gifts are taxable in any business.

I have an accounting degree with a CMA level of classes.
I have also done my own business income tax for 20 years and have been audited on my shemale business by Revenue Canada.

Pay your taxes, as far as I am concerned you are avoiding paying taxes illegally.
It doesn't matter what your account or lawyer says, it only matters what Revenue Canada says.
They will say you owe money, I have no doubt.

I am right, I know more about this than anyone here except maybe Sensual Lover and, it sounds like your advisors.

[tslisaparadise]

Nikki, you are beautiful and smart !! That's quite a combination !!! You should definately go ahead with your plans for a seminar. Please also keep us posted on the C of A appeal.

Cheers,

co-sign nikki is very inspirational great job girl.

[Rockheart]

Well, filing taxes and purchasing a license are different things, one of them is done through a federal agency (the CRA) and the other is administered by the municipal governments... but for those who are licensed, they can claim the cost of their license on their T2125 form, so they don't have to pay income taxes on it. It's just the cost of doing business, IMHO, and I'd gladly purchase a license if it meant I could live and work in peace, without fear of prosecution or persecution. Problem is, the municipalities and the feds can't get themselves on the same page about this, otherwise it would have been resolved already.

HST is actually really easy, I just incorporate it into my hourly rate. Hence, the rate I put on my invoices is actually $265.48/hour, plus 13% HST, for a total of $300/hour. You only have to remit once a year, so I do it all at the same time when I file my T1 and other tax forms. The tricky part is claiming back the HST you've paid on your expenses, but I'm going to include that info as part of my seminar.

As for incalls being an indictable offense, the onus remains on law enforcement to conduct an investigation first, and then lay charges if they feel they are warranted; only at that point would it be viewed as "proceeds of crime" and subject to seizure. The CRA would never ask law enforcement to initiate an investigation - that's not their job. They're only here to collect taxes, and they're not fools - they realize you can pay more taxes if you're free than if you're in jail.

Regarding bankers, they didn't seem to have any problem giving me a pre-approval for a mortgage at 2.99% last month; they really only care about your business being sustainable enough so you can make your payments on time. Of course, I'm sure it didn't hurt when they called up my credit history, and saw my credit score was 794, which is 6 points short of perfect.

Anyways, thanks for the support, and if anyone else is interested in participating, please send me an email and let me know, or post a reply in this thread instead.

Municipal laws and licensing have no relation to Income Tax, you are right.
Criminal laws have nothing to do with income tax.
Incalls and tax are not related, if they bust you they confiscate your money and then you don't have to pay tax.
I say again, Revenue Canada does not care about Criminal offenses other than tax evasion.

If you make money you have to pay taxes, doesn't matter if you are in an illegal business or not.
Drug dealers technically have to pay tax on their earnings too.

I am not sure on HST but with GST you do not have to charge a customer sales tax unless your gross income of taxable revenue is over $30000. So meaning you don't have to collect the tax but you also cannot get a tax deduction as an expense.
You can register for GST/HST but if you make less than the 30,000 it is usually less hassle just not to charge it to customers.
The only other reason that you would want to register to collect sales tax is if you want to get back GST or HST that you paid on supplies for your business.
If you get your Taxes paid back from the government you cannot deduct them, if you don't you can deduct the tax as an expense.
Escorts would generally not buy a lot of supplies really to make the whole process worthwhile, you have to consider the cost of your own time too.
You may be able to deduct some special clothes and sex toys but they won't let you deduct your whole wardrobe or anything.
If you don't think Revenue Canada will come and look, think again.
They came right to my house to inspect my shemale business.

Most banks require 5 years of Income Tax statements showing your net income to offer credit.
This is a good reason to file your taxes.

If you need help with advice or anything on taxes feel free to ask me.
I know taxes in the shemale business like the back of my hand.
My porn business would be very similar to an escorting business in many ways.
I will tell you real facts from experience and education, not a bunch of speculation.
Especially things like what would be considered valid deductions etc.

I have talked in depth with Revenue Canada & Customs and Immigration about Shemales.
They both know I worked illegally in the USA and neither of them care, they just want their duty and taxes.
If there ever was a Shemale Business Consultant, it is probably me.

[Shyla Wild]

Municipal laws and licensing have no relation to Income Tax, you are right.
Criminal laws have nothing to do with income tax.
Incalls and tax are not related, if they bust you they confiscate your money and then you don't have to pay tax.
I say again, Revenue Canada does not care about Criminal offenses other than tax evasion.

If you make money you have to pay taxes, doesn't matter if you are in an illegal business or not.
Drug dealers technically have to pay tax on their earnings too.

I am not sure on HST but with GST you do not have to charge a customer sales tax unless your gross income of taxable revenue is over $30000.
So meaning you don't have to collect the tax but you also cannot get a tax deduction as an expense.
You can register for GST/HST but if you make less than the 30,000 it is usually less hassle just not to charge it to customers.
The only other reason that you would want to register to collect sales tax is if you want to get back GST or HST that you paid on supplies for your business.
If you get your Taxes paid back from the government you cannot deduct them, if you don't you can deduct the tax as an expense.
Escorts would generally not buy a lot of supplies really to make the whole process worthwhile, you have to consider the cost of your own time too.
You may be able to deduct some special clothes and sex toys but they won't let you deduct your whole wardrobe or anything.
If you don't think Revenue Canada will come and look, think again.
They came right to my house to inspect my shemale business.

Most banks require 5 years of Income Tax statements showing your net income to offer credit.
This is a good reason to file your taxes.

If you need help with advice or anything on taxes feel free to ask me.
I know taxes in the shemale business like the back of my hand.
My porn business would be very similar to an escorting business in many ways.
I will tell you real facts from experience and education, not a bunch of speculation.
Especially things like what would be considered valid deductions etc.

I have talked in depth with Revenue Canada & Customs and Immigration about Shemales.
They both know I worked illegally in the USA and neither of them care, they just want their duty and taxes.
If there ever was a Shemale Business Consultant, it is probably me.

I thought we already went over this....

[Rockheart]

I thought we already went over this....

The specific parts about tax we haven't.

Like HST/GST issues.

I like this stuff, the Revenue Canada Auditor said my records were impeccable.

[daisuki888]

thats a good offer for us.. but i cant

[handpuppetboy]

I would think the write offs would be an added bonus as well. I know nothing about escort providers tax write offs, but I do know self employed write offs. Would the ladies not be able to write off some of their operating costs such clothing, travel expenses, operations, ect?

Heck, who says you have to be an escort, you could claim income and expenses as a mobile entertainer or stripper (strip o gram) , could you not?

[Foxy Basket]

Nikki, you are beautiful and smart !! That's quite a combination !!! You should definately go ahead with your plans for a seminar. Please also keep us posted on the C of A appeal.

Cheers,

co-sign nikki is very inspirational great job girl.

thats a good offer for us.. but i cant

Thanks for the support everyone, I've had a huge response from other workers in the sex trade. I just need to confirm a few things, but it looks like I'll be able to do seminars in both Toronto and Ottawa, probably at the end of March.

I am right, I know more about this than anyone here except maybe Sensual Lover and, it sounds like your advisors.

Gee, um, thanks for the "support." I guess there's no reason for me to do this anymore, since you already know everything... Maybe you'd like to offer your own workshops on how to do this instead?

Sheesh, I come here to try to promote a worthwhile seminar to people who can clearly benefit from it, and all you do is come in here yelling with giant bold letters, telling Alexis how right you are, even though I already answered her questions in the post above... Chill out Craig, nobody's trying to steal your throne here, there's no need to get so defensive and angry about this.


Anyways, to anyone else who's interested, I've also managed to get contact info from managers at three of the five major banks, all of whom are willing to help sex workers with whatever they need. So, even if you don't have a bank account, or you've never paid taxes before, there are still ways to gain access to financial institutions. They also told me they wouldn't discriminate against anyone who is trans, so even if your ID isn't a reflection of who you are now, they can still help you get started. So, regardless of your level of expertise or experience dealing with banks or the CRA, there's plenty of useful info that we'll be including in the seminars, so please let me know if you're interested in participating!