Prostitution law ruling due on Monday

[Alexis]

How do you not get taxed to death like the rest of us?
You are (and always have been) required to pay income tax.

You are also required to collect and submit HST and/or GST.

The act of prostitution has always been legal and still is.

The only risk you had of buying property is that you haven't paid income tax on the money you used to buy it.

Lets not forget.. I own 3 businesses.. One corporation and 2 proprietorships..

I'm a member of the chamber of commerce and formerly stood on the board of directors for the home based business association for 3 years..

I get around being taxed to death by doing my own books and by having a very good accountant that checks all my work..

It's worked for me for many years and I write off everything I can and keep track of every penny..

Recently with the economical recession and other factors my corporation posted losses 3 years running..

Not the best news but it has created some carry overs that keep me from getting taxed to death..

Chances are the corporation will never recover the losses and then I will have to bail out the company again with my personal savings..

It's tough to make money with a business here unless you're really aggressive. I'm sure my corporate restructuring will help and other aspects of my work should be taking off more so around June and July..

Since I started this transition thing I haven't made tons of money like I did years previous. My income has taken a tremendous hit from where it was..

Thanks to Canada's wonderful tax breaks I haven't paid much at all for the last couple years..

Next year I might have to pay a bit.. but it won't be much..

[Rockheart]

Lets not forget.. I own 3 businesses.. One corporation and 2 proprietorships..

I'm a member of the chamber of commerce and formerly stood on the board of directors for the home based business association for 3 years..

I get around being taxed to death by doing my own books and by having a very good accountant that checks all my work..

It's worked for me for many years and I write off everything I can and keep track of every penny..

Recently with the economical recession and other factors my corporation posted losses 3 years running..

Not the best news but it has created some carry overs that keep me from getting taxed to death..

Chances are the corporation will never recover the losses and then I will have to bail out the company again with my personal savings..

It's tough to make money with a business here unless you're really aggressive. I'm sure my corporate restructuring will help and other aspects of my work should be taking off more so around June and July..

Since I started this transition thing I haven't made tons of money like I did years previous. My income has taken a tremendous hit from where it was..

Thanks to Canada's wonderful tax breaks I haven't paid much at all for the last couple years..

Next year I might have to pay a bit.. but it won't be much..

All I a saying is if you use money to buy things that you are not paying tax on, gifts etc.
You could find yourself in trouble because you didn't claim it.

Also you cannot keep showing losses on businesses because Revenue Canada will deem them non-profitable.
You cannot keep running businesses and deducting if you never make a profit.

Then if you are still able to live when your sole sources of income only lose money, CRA will ask where that other money came from.

You should be very careful because you have already proven to me that the accountants and professionals you use are not totally up to speed on the real tax laws. You need to ask them if they will represent you if you are audited.
If they will not represent you, you need to be sure you understand this stuff and it is right.

Your reasons you previously gave for not declaring some income is 100% wrong.
Gifts and prostitution income are taxable. Your reasoning is not acceptable to Revenue Canada.
if you are audited, you will be up shit creek, i guarantee you.

Please for you own good review this link.
http://www.cra-arc.gc.ca/gncy/lrt/ndrgrnd-eng.html

[Rockheart]

In the absence of the Bawdyhouse prohibitions how can it be illegal if they work in their homes! I doubt that there are any laws currently in place regarding sex work in private residential settings. To make such work illegal will require each and every municipality to enact their own such by-laws. Say Toronto did so, then operations would simply move to Mississauga e.g. and then to Brampton e.g. and so on just as happened to the legal brothels in Nevada which moved out to the desert where there were no or fewer restrictions than in Las Vegas proper. Oh wait, maybe they would move to set up operations in the Ontario desert know as "Northern Ontario"!!! Now that would be really good news

The Ontario Supreme Court has no jurisdiction beyond its borders so these changes to law currently will apply only in Ontario, will they not? Accordingly, in reaction to this decision the Province of Manitoba has now announced that the Ontario ruling definitely does not affect the situation there!

I see a flurry of action by municipal councils to draft new all-inclusive by-laws in an attempt at controlling this mess.

What a can of worms this has opened up!! The fight is far from over.

What Shyla has pointed out is quite a wise and necessary way to work in order to keep the neighbours happy but in Ontario, after the new changes to the Bawdyhouse law take effect, I can't see that there will be any legal restrictions to prevent a girl from working from home.

Toban every municipality does have laws in place to handle this, it is called Zoning laws.
You must have heard of this?
Areas are zoned for Industrial, or commercial, or residential or retail.
You cannot operate a business in a residential area unless it qualifies as a Home Based Business.
All home based business must be approved by their neighbors that it is ok if that business operates near them.
Do you actually think people in apartments will approve their neighbours being sex workers?
Or what about residential houses near schools or parks, this will never happen.

Just like you cannot just open a restaurant or retail store in your apartment.
You will not be able to run an escort agency from your residence.
Just like you don't want your neighbors doing industrial welding or car repair in his residential apartment.

Seriously what people are going to want their neighbours having strangers coming in and out of their building for sex 24 hours a day. Nobody wants this in their home or neighbourhood.
This zoning has been thought out long ago and is fully in place and applicable to this.

Take Calgary for example.
An escort must first buy an Alberta business license to operate in the provinces.
Then they must by a municipal Adult Entertainment Business license for Calgary.
This Calgary license is not zoned for Home Base business, as such, escorts cannot do incalls to their home.

Take Regina and Saskatoon for example.
All stripper clubs are only allowed to be located in Industrial zoned areas.
As a result strip clubs are generally out in the warehouse areas, no where near any residences.

It won't be a fight.
Escorts will not be working out of their homes, I guarantee it.
We blocked a girl from running a Hair salon in my apartment complex because we deemed it too disturbing with walk in customers and such. When she applied for a business license, we were all notified and refused her.

In fact this new law will give traction to people reporting escorts working out of their homes.
Since this new law will force municipalities to zone escorts and those working outside the zones could receive huge fines and evictions. Also fines for not having the required licenses etc.

Don't worry nobody will be legally working from their homes unless their homes are in zoned areas.
They will most likely have to rent a space in a properly zoned area.
All the basis for this is in place across the country.

Read this:
http://www.enterprisetoronto.com/ind...&faqTopicId=21

http://www.toronto.ca/licensing/pop_...ps_leasing.htm

http://www.toronto.ca/legdocs/bylaws...Schedule-A.htm

[Alexis]

You should be very careful because you have already proven to me that the accountants and professionals you use are not totally up to speed on the real tax laws. You need to ask them if they will represent you if you are audited.

If they will not represent you, you need to be sure you understand this stuff and it is right.

Your reasons you previously gave for not declaring some income is 100% wrong.
Gifts and prostitution income are taxable. Your reasoning is not acceptable to Revenue Canada.
if you are audited, you will be up shit creek, i guarantee you.

I always do my taxes properly and to the letter of the law..

I always have and I always will.. I have no undeclared income.. gifts don't get declared..

One of my companies may be posting a loss.. the other 2 don't..

Some corporations post continuous losses year after year..

I pay more taxes than most people and have for years. It's only in the last couple years that I haven't had employees and payrolls that reach into the tens of thousands of dollars twice a month..

My whole transition has taken me from a 6 figure income down to a low 5 figure number and it's tough..

This year is already better tho..

Also keep in mind.. I don't fuck 10 guys a day..

It's not that busy here in Nanaimo..

My corporation is 11 years old May..

I'm not to worried about being audited as all my papers are in order and always have been..

Now however working girls can legally declare their in call as an in call and they can write it off.. In stead of the old way of saying it's something it's not and pretending you aren't breaking the dumb law thereby making the avails money obtained in a crime..

I think my '12 returns will be a bit rosier than these last couple years..

[Shyla Wild]

Now however working girls can legally declare their in call as an in call and they can write it off..

An incall is not a tax write off. It's income. It is not an expense therefore cannot be written off. Things surrounding it can. A percentage of rent, internet, etc...Business expenses can be written of like car loans. But your incall must be declared as income and therefore cannot be written off. One is a debit the other a credit in accounting...unless I am seriously wrong...CRAG

In stead of the old way of saying it's something it's not and pretending you aren't breaking the dumb law thereby making the avails money obtained in a crime..

"Shyla Wild" is registered under a QUE INC. I am an adult entertainer. I never had to hide anything.

[Alexis]

An incall is not a tax write off. It's income. It is not an expense therefore cannot be written off. Things surrounding it can. A percentage of rent, internet, etc...Business expenses can be written of like car loans. But your incall must be declared as income and therefore cannot be written off. One is a debit the other a credit in accounting...unless I am seriously wrong...CRAG

An "incall" referred to as the location not the act of being fucked is a tax write off..

Previously it was against the law to operate an in call location..

Under the bawdy house law in call locations were illegal, thereby the business conducted there is done so while breaking the law to begin with.. Money gained while committing a crime is ill gotten gains and I'm pretty sure the courts can take it away from you just like if you had a grow op. They could seize all your assets as a result and all your real property too..

Honestly I'm not into debating why..

In Call locations were illegal now they are not.. In Ontario ONLY!

Other provinces can still try to enforce the law..

[Rockheart]

An "incall" referred to as the location not the act of being fucked is a tax write off..

Previously it was against the law to operate an in call location..

Under the bawdy house law in call locations were illegal, thereby the business conducted there is done so while breaking the law to begin with.. Money gained while committing a crime is ill gotten gains and I'm pretty sure the courts can take it away from you just like if you had a grow op. They could seize all your assets as a result and all your real property too..

Honestly I'm not into debating why..

In Call locations were illegal now they are not.. In Ontario ONLY!

Other provinces can still try to enforce the law..

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

I keep trying to tell you, your assumption on this is 100% wrong.
I will never mention it again, just worried you may be screwed if audited.

Unless you are arrested and your assets seized, you have to pay tax period.
Once the assets are confiscated, you no longer have to pay tax because you don't own the assets anymore.
Until this happens, you have to pay tax.
This is exactly how they got Al Capone, he didn't pay tax on income that happened to be illegal.

I made money illegally in the United States and told Revenue Canada.
They did not care how I earned it, just that I declare it.

The one and only reason you wouldn't pay tax on criminal income is if you were scared of Revenue Canada reporting you.
So yes you are doing yourself a huge disservice by only declaring some of your income.
Either declare it all or none.

[Rockheart]

I always do my taxes properly and to the letter of the law..

I always have and I always will.. I have no undeclared income.. gifts don't get declared..

One of my companies may be posting a loss.. the other 2 don't..

Some corporations post continuous losses year after year..

I pay more taxes than most people and have for years. It's only in the last couple years that I haven't had employees and payrolls that reach into the tens of thousands of dollars twice a month..

My whole transition has taken me from a 6 figure income down to a low 5 figure number and it's tough..

This year is already better tho..

Also keep in mind.. I don't fuck 10 guys a day..

It's not that busy here in Nanaimo..

My corporation is 11 years old May..

I'm not to worried about being audited as all my papers are in order and always have been..

Now however working girls can legally declare their in call as an in call and they can write it off.. In stead of the old way of saying it's something it's not and pretending you aren't breaking the dumb law thereby making the avails money obtained in a crime..

I think my '12 returns will be a bit rosier than these last couple years..

Gifts are income unless they are from someone at arms length (Family or close friends)
Gifts received from clients are taxable.

Corporations are closed every day because they never make money.
You cannot just write stuff off against an entity that makes no money.
Revenue Canada will make you cash out and close the business if it never makes money or shows losses for too long for no reason. Unless you are in an industry that goes through cycles, like manufacturing.
They don't compare the businesses to each other they are only looking at the viability of the one.
You can't just use a corporation as a tax dump to avoid taxes.

If your declared income does not even cover your basic payments and expenses, you will be in trouble.

If you are spending money you didn't declare for what ever your reason, and you get audited, you will be fucked.

Your papers are not in order if you did't declare all your income.

[Rockheart]

An incall is not a tax write off. It's income. It is not an expense therefore cannot be written off. Things surrounding it can. A percentage of rent, internet, etc...Business expenses can be written of like car loans. But your incall must be declared as income and therefore cannot be written off. One is a debit the other a credit in accounting...unless I am seriously wrong...CRAG



"Shyla Wild" is registered under a QUE INC. I am an adult entertainer. I never had to hide anything.

Criminal laws have no bearing on paying tax at all.
If you make money you pay tax period. (It is so simple)
This law will not change how much tax anyone has to pay.

Escorts now will be able to work indoors legally without the threat of criminal arrest.
That is all, there is absolutely no tax implications to this.

Today escorts are required to collect GST if their gross sales are over $30,000
Today escorts are required to pay tax on all income.

Today at your residence you will be able to deduct a portion for a home office.
However, if you are doing incalls, you will most likely have to rent commercial location in a properly zoned area.
In this case you probably cannot deduct a home office, since you have an official office or incall location.

With this law, unless you live in a zoned area with the proper municipal licensing, it will still be illegal to do incalls in your home.

I hate to break this to everyone but this is the fact.
If you want to do incalls you will have to go work in a properly zoned Whore House.

If escorts continue to do incalls as they do today, they will continue to be breaking municipal laws.

The most likely thing to come out of all of this is that Red Light districts will be zoned in large cities.

[Shyla Wild]

An "incall" referred to as the location not the act of being fucked is a tax write off..

Previously it was against the law to operate an in call location..

Under the bawdy house law in call locations were illegal, thereby the business conducted there is done so while breaking the law to begin with.. Money gained while committing a crime is ill gotten gains and I'm pretty sure the courts can take it away from you just like if you had a grow op. They could seize all your assets as a result and all your real property too..

Honestly I'm not into debating why..

In Call locations were illegal now they are not.. In Ontario ONLY!

Other provinces can still try to enforce the law..

I have an MBA....trust me...if this is the advice your accountant is giving you...fire him before you end end with serious problems. Seriously, this dude didn't advise you that you had to declare gifts and donations? You are mixing up Business Law and Criminal Law. There is a difference between the RCMP and Revenue Canada. Presently the Law in Ontario has changed therefore you could write off your hotel expenses and travel expenses, food and phone (as a travelling girl). I am in Quebec...NOT Ontario. We have some of the hardest crackdowns on escorts. Yet I declare my income, write of 1/3 my house, my phone, my travel expenses and whatever else my accountant says I can. The government wants their cut. Just like the mob if you work in their territory. End of story. I have used the example of Capone before and Crag used it again. He was the Godfather of Chicago. The crimes he committed he was never found guilty for. Not murder, extortion, or trafficking. He got nailed on Tax evasion.

Here is how it works.

If you get arrested

Don't pay taxes.

Possible Charges:
Solication
Bawdy House
Tax Evasion

Possible problems:
Audit
Asset Seizure possible after Tax evasion Charges

Pay Taxes

Possible Charges
Solication
Bawdy House

Possible problems
Asset Seizure

Either way they can seize your assets. And in case 1 they will make you pay taxes and fines, then come for your stuff...

[Shyla Wild]

Criminal laws have no bearing on paying tax at all.
If you make money you pay tax period. (It is so simple)
This law will not change how much tax anyone has to pay.

Escorts now will be able to work indoors legally without the threat of criminal arrest.
That is all, there is absolutely no tax implications to this.

Today escorts are required to collect GST if their gross sales are over $30,000
Today escorts are required to pay tax on all income.

Today at your residence you will be able to deduct a portion for a home office.
However, if you are doing incalls, you will most likely have to rent commercial location in a properly zoned area.
In this case you probably cannot deduct a home office, since you have an official office or incall location.

With this law, unless you live in a zoned area with the proper municipal licensing, it will still be illegal to do incalls in your home.

I hate to break this to everyone but this is the fact.
If you want to do incalls you will have to go work in a properly zoned Whore House.

If escorts continue to do incalls as they do today, they will continue to be breaking municipal laws.

The most likely thing to come out of all of this is that Red Light districts will be zoned in large cities.

I agree 100% and follow this advice as this is exactly what my Lawyer and Accountant warned me about.

I have a few questions since you are well versed in this. You have said that we need a permit for our work place which I understand. But what about a hotel? How does that work? Could I use that as a loophole? Also you said that you worked and made illegal money in the states. Since I am in Quebec, what I do in Ontario is not illegal anymore. But how does that apply to the legal/illegal income? Does it still factor place of residence?

[Rockheart]

... Presently the Law in Ontario has changed therefore you could write off your hotel expenses and travel expenses, food and phone (as a travelling girl). ...

As far as revenue Canada is concerned you have always been able to deduct travel expenses, no matter where you live.
If travel is required for your business and it is economically feasible, you can deduct it.

The Federal Government collects all income tax and gives the provinces their share.
What you can deduct as expenses against a business is the same in any province.
Nationwide businesses could not afford to operate if taxation was this complicated.

There is only Federal Income Tax regulations.
Any exceptions like Quebec Pension Plan are incorporated into the Federal system.

Income tax rates vary by provinces but not Business Tax filing procedures.

I have deducted travel expenses in almost every provinces and from many countries.

[Rockheart]

I agree 100% and follow this advice as this is exactly what my Lawyer and Accountant warned me about.

I have a few questions since you are well versed in this. You have said that we need a permit for our work place which I understand. But what about a hotel? How does that work? Could I use that as a loophole? Also you said that you worked and made illegal money in the states. Since I am in Quebec, what I do in Ontario is not illegal anymore. But how does that apply to the legal/illegal income? Does it still factor place of residence?

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.

[Alexis]

I have an MBA....trust me...if this is the advice your accountant is giving you...fire him before you end end with serious problems. Seriously, this dude didn't advise you that you had to declare gifts and donations? You are mixing up Business Law and Criminal Law. There is a difference between the RCMP and Revenue Canada. Presently the Law in Ontario has changed therefore you could write off your hotel expenses and travel expenses, food and phone (as a travelling girl). I am in Quebec...NOT Ontario. We have some of the hardest crackdowns on escorts. Yet I declare my income, write of 1/3 my house, my phone, my travel expenses and whatever else my accountant says I can. The government wants their cut. Just like the mob if you work in their territory. End of story. I have used the example of Capone before and Crag used it again. He was the Godfather of Chicago. The crimes he committed he was never found guilty for. Not murder, extortion, or trafficking. He got nailed on Tax evasion.

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

I've owned this particular Registered Canadian Corporation for 11 years and I know all my books are 100% in order and I certainly hope you aren't insinuating otherwise..

I've been filing my own T2's since '96 and never once have my books come under question..

My home office space is always going to be a write off..



I honestly don't know why people want to be so negative about this wonderful thing that has been years and years in the making. We are slowly getting to the point where being an SP can actually be an acceptable thing to do in Canadian society..

We should all give a massive thanks to Madam De Sade!

[Rockheart]

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

I've owned this particular Registered Canadian Corporation for 11 years and I know all my books are 100% in order and I certainly hope you aren't insinuating otherwise..

I've been filing my own T2's since '96 and never once have my books come under question..

My home office space is always going to be a write off..



I honestly don't know why people want to be so negative about this wonderful thing that has been years and years in the making. We are slowly getting to the point where being an SP can actually be an acceptable thing to do in Canadian society..

We should all give a massive thanks to Madam De Sade!

This ruling has zero implications on Taxation.

This ruling will not allow anyone to work legally in their home unless their home is i a properly zoned area.
Escorting will never ever qualify as a home based business.

This ruling only means someone MAY be able to open some Whore houses legally in Canada.

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.