Prostitution law ruling due on Monday

[Shyla Wild]

For example,

To operate any business in Quebec you must buy a Provincial business license first, no matter what you are doing.
Next to operate a business in Montreal you must buy a Municipal business license to operate there.

So if you have both these licenses you can operate anywhere your Municpal license allows (zoning)

If you choose to do incalls in a hotel you would declare the money to Revenue Canada and deduct the travel expenses,
no matter if is criminally legal or not.

If you were operating in an area not zoned for escorting you would be liable to criminal prosecution and fines.
However this has no bearing on Revenue and expenses at all.

If you make income you declare it no matter how you made it or where you made it.
If you have legitimate expenses against this income you can deduct it no matter where you did it.

Me working illegally in the US is only illegal in the US.
Canada only cares I pay tax on this money.
All expense i incurred in the US are valid, all income I earned in the US is taxable.

As far as Revenue Canada is concerned there is nothing illegal about making money in any way.
The only criminal implication related to Revenue Canada is avoiding tax.

Thank you, that clears up most. The rest I will discuss with my lawyer and accountant in private.

Honestly I don't know what you're going on about..

Don't worry I can tell.

[Alexis]

It has nothing to do with an SP being more accepted.
It has to do with Human Rights.
These particular Humans didn't have the same rights and safety to pursue their interests as other humans.

Really all they have done is say Prostitutes are human and deserve the basic rights that come with it in the constitution.

That is all.

I am not trying to be negative, i am trying to tell you the truth so you are all not disappointed.

Well it's good that you aren't being negative..

I disagree.. I think this has done lots to help SP's get treated more like equal humans in Canadian society. Eventually there will be a day when it's not a bad things to say you're an escort..

More and more people that are my friends think it's awesome that I am turning it into another business..

[Rockheart]

Well it's good that you aren't being negative..

I disagree.. I think this has done lots to help SP's get treated more like equal humans in Canadian society. Eventually there will be a day when it's not a bad things to say you're an escort..

More and more people that are my friends think it's awesome that I am turning it into another business..

The truth is negative not me.
Don't shoot the messenger, so to speak.

[Rockheart]

Thank you, that clears up most. The rest I will discuss with my lawyer and accountant in private.

The only thing you have some issue with, is whether you HAD to go to Toronto to earn money.

Realistically, living in a big city like Montreal you have no legitimate reason to go to Toronto to work.
Escorting is a very homo genius product and there is no real differentiation between product,
this means you will never offer something they cannot find in their own city.
Your only exception could be if you were a notable celebrity say Kimber James, or the like.

So they could say that you were on vacation and, just working while on vacation.
You may not be able to deduct travel expenses except taxis to get to a client or a dinner with a client.

If you had pre booked clients that were requesting your service and offering significant money to come,
then this is a possible exception. As I say though you can find mostly the same clientele in any big city.

However if you are having your flight and hotel paid for by a client,
you must declare that as income and cannot deduct it then.

As escorting becomes more mainstream in Canada this will become more clear.
Girls will think twice about travelling alot if they cannot expense most of their travels but still have to pay tax.

Tgirls still have the advantage that there is not many trannies still in smaller cities,
However genetic girls cannot really give much reason they need to travel for business.

If I ran genetic girl sites it would be pretty hard for me to expense a trip to Thailand because I could not really justify it.
There is plenty of girls here of every race.
However because Thailand is the Ladyboy capital of the world, I have reason to travel there on business.

[Shyla Wild]

Well it's good that you aren't being negative..

I wasn't being negative, I just didn't want you to get in trouble...sorry if I came off that way.

If you had pre booked clients that were requesting your service and offering significant money to come,
then this is a possible exception.

Bingo...You have an idea what works. I use a form of this or part of this. Sorry, no more details here. There are some secrets that should always stay that way.

[Toronto]

hummm you can place it along the lines of a celebrity yeh their are escorts of every verity in every town but some have followings and they ate a singular person. this is across the board think of labor jobs like painting i know several standard wall panting people that have traveled to other provinces and out side of the country to paint they claimed their expenses and i guarantee you their were local painters that could do the job

[sensual_lover20]

Thank you, that clears up most. The rest I will discuss with my lawyer and accountant in private.



Don't worry I can tell.

As a tax specialist, I have noticed that most Canadian residents understand tax on a very general level. Even moreso for general accounting practititioners. Many people claim expenses (i.e. home office), however, has anyone ever looked at the provision in the Income Tax Act to see if they are following the law. For example, spousal support payments are generally deductible and your practitioner will deduct it because they do not know when it does not apply. Generalizations can be dangerous, trust me.

Canada Revenue Agency (CRA) is an administrative body of the Department of Finance (DoF) who enacts current and proposed legislation. CRA is one interpretation of the law and in many cases is questionable or challengeable at the very least. CRA is not precedent, however, following their guidelines is the least line of resistance. They provide very concise and understandable interpretation bulletins (ITs) on most domestic tax matters for those who like to read. If you are a resident in Canada using court jurisprudence then you are subject to tax on your worldwide income. Depending on the treaty, you may be afforded a foreign tax credit on the aforementioned income from abroad. You may be taxed in different provinces subject to whether you have created a permanent establishment there. You are to record illegal incomes as well. CRA is not the police nor do they have those powers. They can certainly put you in financial disarray though.

It is always good to use a qualified advisor. Filing your own T2s is simply scary even more if it is done by hand. In life, you pay for what you get. If you try to do it yourself or find the cheapest advisor, it will cost you in the long-run. Many will pay thousands for a purse with an "LV" on it or an antique item, but skimp on advisors for organizing their financial matters. This is reality though. Caveat emptor. Luckily for all you taxpayers, CRA has now changed their audit methodolgy to a risk based approach. None of you are high risk and approximately 2% of total taxpayers are audited per year accordingly to the Director of Personal Income Taxes in the DoF. Take a look at the federal budget to see how much government revenues raised in corporate taxes.

I do welcome your tax questions ... especially for special girls. Better start charging Harmonized Sales Tax (HST) in Ontario! Shemale Canada disclaimers saying prices do not include HST.

[Shyla Wild]

I got a question. You say we are not "High Risk". What exactly would make some "High Risk"?

Would...let's say....for arguments sake, 3-4 million legally invested in international real estate make someone "High Risk"?

As a tax specialist, I have noticed that most Canadian residents understand tax on a very general level. Even moreso for general accounting practititioners. Many people claim expenses (i.e. home office), however, has anyone ever looked at the provision in the Income Tax Act to see if they are following the law. For example, spousal support payments are generally deductible and your practitioner will deduct it because they do not know when it does not apply. Generalizations can be dangerous, trust me.

Canada Revenue Agency (CRA) is an administrative body of the Department of Finance (DoF) who enacts current and proposed legislation. CRA is one interpretation of the law and in many cases is questionable or challengeable at the very least. CRA is not precedent, however, following their guidelines is the least line of resistance. They provide very concise and understandable interpretation bulletins (ITs) on most domestic tax matters for those who like to read. If you are a resident in Canada using court jurisprudence then you are subject to tax on your worldwide income. Depending on the treaty, you may be afforded a foreign tax credit on the aforementioned income from abroad. You may be taxed in different provinces subject to whether you have created a permanent establishment there. You are to record illegal incomes as well. CRA is not the police nor do they have those powers. They can certainly put you in financial disarray though.

It is always good to use a qualified advisor. Filing your own T2s is simply scary even more if it is done by hand. In life, you pay for what you get. If you try to do it yourself or find the cheapest advisor, it will cost you in the long-run. Many will pay thousands for a purse with an "LV" on it or an antique item, but skimp on advisors for organizing their financial matters. This is reality though. Caveat emptor. Luckily for all you taxpayers, CRA has now changed their audit methodolgy to a risk based approach. None of you are high risk and approximately 2% of total taxpayers are audited per year accordingly to the Director of Personal Income Taxes in the DoF. Take a look at the federal budget to see how much government revenues raised in corporate taxes.

I do welcome your tax questions ... especially for special girls. Better start charging Harmonized Sales Tax (HST) in Ontario! Shemale Canada disclaimers saying prices do not include HST.

[sensual_lover20]

You would not be "high risk." Here is KPMG's (a former employer of mine) analysis: http://www.kpmg.com/Ca/en/IssuesAndI...s%20Begins.htm.

You did not mention the entity by which you are investing through. For example, you can structure your investments through a partnership, trust, corporation or proprietor which all vary for tax compliance purposes and may have other implications. CRA is heavily auditing trusts currently due to improper set up of many (thus becoming reversionary trusts under subsection 75(2)). Their next plan of attack is evidently partnerships as an even less audited area. The CRA only has so much manpower and therefore leaves less risky, simple filing taxpayers alone because they are less likely to be avoiding or evading taxes in general.

Assuming your real estate investments abroad are held personally you are required to complete a T1135 (foreign income verification statement) where you would indicate that you hold greater than $1 million in real poperty outside of Canada. You must indicate the area and income generated from that property annually thereon. (Form: http://www.cra-arc.gc.ca/E/pbg/tf/t1135/t1135-07e.pdf) Failing to file can have interest and penalties attracted to it but this can be mitigated through the CRA voluntary disclosure program (VDP) to reduce the price on such infringement. This form was created because it allows CRA to track your worldwide income, as previously mentioned you are taxed on this. The trigger of an audit from that form may be, but is not limited to, not reporting any income from your foreign investments since for example your property may be generating rental income, investments in countries who have yet to sign tax information exchange agreements (TIEAs) which indicates possible offshore bank accounts (or US has specific new PFIC rules applicable to foreign investors), or a reduction in the type of property may indicate a disposition took place which is a taxable event for Canadian tax purposes.

Hope this helps Shyla. Make sure your advisor knows real tax because things can get hairy in the international tax realm. You may be required to file returns in other countries and it is very common in tax treaties to provide to right of taxation on immovable property to the host country. Foreign tax credits may also be available depending on the country. Tax is highly complicated as you can see.

[Shyla Wild]

You would not be "high risk." Here is KPMG's (a former employer of mine) analysis: http://www.kpmg.com/Ca/en/IssuesAndI...s%20Begins.htm.

You did not mention the entity by which you are investing through. For example, you can structure your investments through a partnership, trust, corporation or proprietor which all vary for tax compliance purposes and may have other implications. CRA is heavily auditing trusts currently due to improper set up of many (thus becoming reversionary trusts under subsection 75(2)). Their next plan of attack is evidently partnerships as an even less audited area. The CRA only has so much manpower and therefore leaves less risky, simple filing taxpayers alone because they are less likely to be avoiding or evading taxes in general.

Assuming your real estate investments abroad are held personally you are required to complete a T1135 (foreign income verification statement) where you would indicate that you hold greater than $1 million in real poperty outside of Canada. You must indicate the area and income generated from that property annually thereon. (Form: http://www.cra-arc.gc.ca/E/pbg/tf/t1135/t1135-07e.pdf) Failing to file can have interest and penalties attracted to it but this can be mitigated through the CRA voluntary disclosure program (VDP) to reduce the price on such infringement. This form was created because it allows CRA to track your worldwide income, as previously mentioned you are taxed on this. The trigger of an audit from that form may be, but is not limited to, not reporting any income from your foreign investments since for example your property may be generating rental income, investments in countries who have yet to sign tax information exchange agreements (TIEAs) which indicates possible offshore bank accounts (or US has specific new PFIC rules applicable to foreign investors), or a reduction in the type of property may indicate a disposition took place which is a taxable event for Canadian tax purposes.

Hope this helps Shyla. Make sure your advisor knows real tax because things can get hairy in the international tax realm. You may be required to file returns in other countries and it is very common in tax treaties to provide to right of taxation on immovable property to the host country. Foreign tax credits may also be available depending on the country. Tax is highly complicated as you can see.

My accountant is a CA so I was very careful with my investments and my paperwork. The real estate does not generate profit at the moment. To due Mortgages on three of my 4 properties, grounds keeping and I reinvest the rest into renovations. So it's presently hard to pay tax when there is no profit. My foreign investments is personal and separate from my Quebec INC (my escorting). None of this is a secret to Revenue Canada.

Next question. How does HST apply to workers from out of province? I do clear that type of income in my travels to Ontario and therefore would be subject to collecting HST. My accountant is going to hate this Law Change.

[sensual_lover20]

Most accountants are CA's, but this does not mean they are by any means good tax advisors. Not all CA have knowledge of tax as some just audit. Inquire if they received their CICA in-depth tax course Part I and Part II. This is a minimum requirement for a reasonable tax professional. I chose to get my Master in Taxation (from Waterloo) which is a higher specialization from that of the CICA course. I only mentioned this because I have recently obtained several clients from other CAs who purported themselves as tax advisors. Needless to say, mistakes were made when filing and not rectified. A top tax advisor in BC is named Kim Moody. He is well respected, is creative and writes several articles in the Canadian Tax Foundation Journals.

I am not an indirect tax specialist. Please consider Pages 31-32 for your answer: http://www.cra-arc.gc.ca/E/pub/gm/b-103/b-103-e.pdf. It appears if 90% of your services are in BC then you should be charging your clients BC rates (effective April 1, 2013, BC's 12% HST will be replaced by the GST and the PST), otherwise it gets a bit more complicated depending on the scenario. It is also questionable on whether escorting would be defined as a "professional service" under the Excise Tax Act (ETA). As accountants we love changes to the Income Tax Act (ITA) (though prostitution would not be an amendement), it brings in advisory fees. To those who don't like change then they will hate it and albeit are not doing their duties adequately. Nobody is perfect though.

[sensual_lover20]

Sorry, I just realized your Montreal.

[Shyla Wild]

I was wondering about that BC thing. I got my accountant through my Dad's firm. He always worked with Deloitte, and so have I. Now if I was with Arthur Andersen...I might be very worried.

[sensual_lover20]

I was wondering about that BC thing. I got my accountant through my Dad's firm. He always worked with Deloitte, and so have I. Now if I was with Arthur Andersen...I might be very worried.

BC altered it. It demonstrates how quiet we are in Toronto. I am in belief that we need a crusader here and it would shake up the politics completely.

Arthur Andersen is Deloitte since they merged into them post-Enron. Nonetheless, Deloitte hits T-girl Forums! I thought I would never see the day. I worked for both Deloitte and KPMG. They are qualified usually, just a tad expensive. It pays to be safe though. I can see your MBA is serving you well. If I ever head out to Montreal we should amalgamate together

[falkon]

Not true.
Money gained by committing a crime is 100% taxable.
If you read that link I gave you, you can read this right from Revenue Canada.
http://www.cra-arc.gc.ca/gncy/lrt/ndrgrnd-eng.html

Also, if business makes more than 30k$ in gross sales, they should collect GST & PST (or HST for many other provinces).

No need to go back to Al Capone, they got many Hell's Angels this way, for not paying their due share of GST & PST on drug sales.

But Revenue Canada is kinda nice, so long as you're "fair". Revenu Qu?bec is another matter. You're guilty until proven innocent and if you make a simple mistake (wrong date on a form for example), they will haunt you and try to collect you claiming you defrauded them until you are in coffin.

And the way they get people now is to recreate their income based on their spending.
Say you declare a 25 000$ yearly income on some business, just to avoid being bothered by GST. If it happens that you own a 650 000$ house in Toronto, a cottage in Quebec, a 60 000$ brand new car... well, they will calculate how much you are supposed to win to afford that, then you will have to prove you did afford all this with a 25 000$ yearly income...

And in Quebec, it so happens that their methods of calculations are kinda... generous for them. Even if you're heavily indebted because of your lifestyle, they'll claim you make a lot more money than what you declare. I think the only difference with shark loans is they don't physically break your legs.