Prostitution law ruling due on Monday

[sensual_lover20]

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.

Revenu Qu?bec (RQ) is aggressive. They come out with leading-edge strategies to ensure they extract the maximum dollar from their taxpayers. Comply or take a metaphorical bullet in the face. I wrote a paper analyzing the different audit methodologies by CRA on cash businesses (specifically restaurants but applies to all businesses). RQ had their own methodologies which are very intensive. However, CRA can be nice but they feel you have run afoul they will have you in a vice as well. Assuming the auditor has the knowledge which is probably the biggest question.

[Shyla Wild]

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

OMG....serious misunderstanding. I do not nor did my Dad work for Deloitte. I work with them. They handle my personal and business.

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 payi

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.

I agree that revenue quebec is a bunch of SOBs. I received a letter that i made a mistake on my taxes on my return of 2005. Next thing I know I owe 500$ to them.

[Rockheart]

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.

In addition to my accounting degree, I have been doing my own business taxes for 20 years
You are right with my general accountant training, plus not practicing, I don't know the intricacies of all industries.
However I have done the research myself for all facets of my industry, which many people should do.
So you are right, many depend on general accountants that do not know the real details.

As you say CRA can be reasonable, as long as you are reasonable in your filings.
Blatantly trying to get away with ridiculous expenses or not reporting income can be easily discover.
I have found if you are fair and reasonable with your taxes and do your homework you will be ok.
Since I have an internet business, many things about it are not very well defined in tax guidelines yet.
However I have fared ok by trying to get things as close as I can.

I hope you are right about the risk part, this means I probably won't get audited again. Right?
I got audited for 5 years returns and the auditor found $200 in adding mistakes only, so CRA lost money on that one for sure.
My thinking was they were just on a mission to find out what my business really was, now they know.
Based on the attitude of the Auditor towards porn, shemales and escorts, I doubt anyone will volunteer to audit me again.
She was disgusted by the whole thing.

As I said before I do not have to charge GST because I have less than $30,000 in gross sales in Canada.
I think someone else said HST is the same,
so escorts would generally not have to start charging until they hit that mark and the next year after, unless this has changed.
If you register for a GST number you can then apply for a rebate on the GST you paid in.
However then you cannot deduct the GST as an expense, which is also acceptable according to my CRA auditor.

Probably between Senusual Lover and I, we are experts in Shemale, escort, porn taxes.
I even have extensive experience with Customs and Immigration regarding Shemales and ladyboys.
I have been imported a few shemales and been stopped coming back from filming porn in the states, also from Thailand.
Customs and I have discussed shemales in depth, many times.
They even accuse me of possibly being "Some kind of shemale" and called me gay.

I have often thought of starting a Canadian Adult business services company.
The H&R Block of Porn

[Shyla Wild]

As you say CRA can be reasonable, as long as you are reasonable in your filings.
Blatantly trying to get away with ridiculous expenses or not reporting income can be easily discover.
I have found if you are fair and reasonable with your taxes and do your homework you will be ok.

I agree with this. My accountant told me the samething. Be fair and they are fair.

Based on the attitude of the Auditor towards porn, shemales and escorts, I doubt anyone will volunteer to audit me again.

I pissed myself laughing.

As I said before I do not have to charge GST because I have less than $30,000 in gross sales in Canada.
I think someone else said HST is the same,
so escorts would generally not have to start charging until they hit that mark and the next year after, unless this has changed.
If you register for a GST number you can then apply for a rebate on the GST you paid in.
However then you cannot deduct the GST as an expense, which is also acceptable according to my CRA auditor.

Interesting. I have to check THIS with my accountant.

[sensual_lover20]

There is only one CRA view provided on erotic services. Please enjoy responsibly.

[?10,741] Deductibility of Expenses by Operator of Erotic Web Site

The situation considered by the CRA involved an individual, A, and his wife, B, operating an erotic Web site where B was the focus of the Web site and A looked after all the technical aspects. The net income of the business was shared equally between A and B. In the course of carrying on the business, B incurred expenses for a fitness centre enrolment, for breast implants, and cosmetic treatments including botox injections, hair removal, rejuvenation treatment, and finally for wardrobe and lingerie. The business was not operated as a partnership. The CRA was asked if A and B could deduct those expenses to calculate their business income.

The CRA confirmed that the expenses would not be deductible because they would be considered personal and disallowed under s. 18(1)(h) of the Act. Even though subparagraph (i) of capital cost allowances (?CCA?) Classes 8 and 12 of Schedule II of the Regulations allow taxpayers to claim a CCA at rates of 100 per cent and 20 per cent on the cost of a uniform or tangible capital property (like wardrobe) not included in another CCA class, this would not apply in this case because the wardrobe and lingerie were not acquired only for business but also for personal purposes. The CRA noted in paragraphs 10(l.1) and 10(l.2) of IT-525R that self-employed artists could deduct the CCA on their wardrobe but only if it was acquired specifically to earn self-employment income and used for performances. If a taxpayer acquired clothing that could be used for both his or her business and personal activities, the CRA considered that the expense was of a personal nature and not deductible under s. 18(1)(h) of the Act, which was the case here.

Internal Technical Interpretation, Business and Partnerships Division
March 22, 2011

Income Tax Act: 18(1)(a); 18(1)(b); 18(1)(h); 20(1)(a)
Income Tax Regulations: 1100(1); 8; 12
Interpretation Bulletins: IT-525R, Performing Artists (Consolidated) (para. 10)
Canadian Tax Reporter: ?4753; ?4801; ?4836; ?4902; ?4979; ?4992a
CRA File Number (CRA document is in French only): 2010-0387551I7

[sensual_lover20]

You have to register for the GST/HST when your worldwide revenues from taxable sales exceed $30,000 (or $50,000 if you are a public service body) in the past four consecutive calendar quarters or in a single calendar quarter. (Link: http://www.cra-arc.gc.ca/E/pub/gi/gi-116/gi-116-e.pdf).

[Shyla Wild]

There is only one CRA view provided on erotic services. Please enjoy responsibly.

[?10,741] Deductibility of Expenses by Operator of Erotic Web Site

The situation considered by the CRA involved an individual, A, and his wife, B, operating an erotic Web site where B was the focus of the Web site and A looked after all the technical aspects. The net income of the business was shared equally between A and B. In the course of carrying on the business, B incurred expenses for a fitness centre enrolment, for breast implants, and cosmetic treatments including botox injections, hair removal, rejuvenation treatment, and finally for wardrobe and lingerie. The business was not operated as a partnership. The CRA was asked if A and B could deduct those expenses to calculate their business income.

The CRA confirmed that the expenses would not be deductible because they would be considered personal and disallowed under s. 18(1)(h) of the Act. Even though subparagraph (i) of capital cost allowances (“CCA”) Classes 8 and 12 of Schedule II of the Regulations allow taxpayers to claim a CCA at rates of 100 per cent and 20 per cent on the cost of a uniform or tangible capital property (like wardrobe) not included in another CCA class, this would not apply in this case because the wardrobe and lingerie were not acquired only for business but also for personal purposes. The CRA noted in paragraphs 10(l.1) and 10(l.2) of IT-525R that self-employed artists could deduct the CCA on their wardrobe but only if it was acquired specifically to earn self-employment income and used for performances. If a taxpayer acquired clothing that could be used for both his or her business and personal activities, the CRA considered that the expense was of a personal nature and not deductible under s. 18(1)(h) of the Act, which was the case here.

Internal Technical Interpretation, Business and Partnerships Division
March 22, 2011

Income Tax Act: 18(1)(a); 18(1)(b); 18(1)(h); 20(1)(a)
Income Tax Regulations: 1100(1); 8; 12
Interpretation Bulletins: IT-525R, Performing Artists (Consolidated) (para. 10)
Canadian Tax Reporter: ?4753; ?4801; ?4836; ?4902; ?4979; ?4992a
CRA File Number (CRA document is in French only): 2010-0387551I7

What about a pornstar? Or a stripper?

I still want to understand how this works.

I get paid to have sex with my clients and it's a crime.
A pornstar gets paid to have sex, they VIDEOTAPE the crime, and they sell it. And this somehow is legal.

Nice double standard...How did Larry Flint sell this to congress again? Freedom of impression or some bullshit?

[Rockheart]

What about a pornstar? Or a stripper?

I still want to understand how this works.

I get paid to have sex with my clients and it's a crime.
A pornstar gets paid to have sex, they VIDEOTAPE the crime, and they sell it. And this somehow is legal.

Nice double standard...How did Larry Flint sell this to congress again? Freedom of impression or some bullshit?

I thought sex with a client is essentially legal in Canada as long as you are not doing incalls or working on the street?
Like as long as there is a camera in the room, you could say u were making porn anyway.

There is really no difference that i can see but you can generally make more money escorting than making porn.

[sensual_lover20]

What about a pornstar? Or a stripper?

I still want to understand how this works.

I get paid to have sex with my clients and it's a crime.
A pornstar gets paid to have sex, they VIDEOTAPE the crime, and they sell it. And this somehow is legal.

Nice double standard...How did Larry Flint sell this to congress again? Freedom of impression or some bullshit?

You can extrapolate that on your own or ask your advisor.

The two scenarios above are both businesses, but one is private while the other is public and thus easier to regulate. Until they find a way to regulate escorts it will continue to be illegal.

On another note, I checked your profile and saw you have a penis greater than 10 inches. Brazil wants it back.

[Rockheart]

There is only one CRA view provided on erotic services. Please enjoy responsibly.

[?10,741] Deductibility of Expenses by Operator of Erotic Web Site

The situation considered by the CRA involved an individual, A, and his wife, B, operating an erotic Web site where B was the focus of the Web site and A looked after all the technical aspects. The net income of the business was shared equally between A and B. In the course of carrying on the business, B incurred expenses for a fitness centre enrolment, for breast implants, and cosmetic treatments including botox injections, hair removal, rejuvenation treatment, and finally for wardrobe and lingerie. The business was not operated as a partnership. The CRA was asked if A and B could deduct those expenses to calculate their business income.

The CRA confirmed that the expenses would not be deductible because they would be considered personal and disallowed under s. 18(1)(h) of the Act. Even though subparagraph (i) of capital cost allowances (?CCA?) Classes 8 and 12 of Schedule II of the Regulations allow taxpayers to claim a CCA at rates of 100 per cent and 20 per cent on the cost of a uniform or tangible capital property (like wardrobe) not included in another CCA class, this would not apply in this case because the wardrobe and lingerie were not acquired only for business but also for personal purposes. The CRA noted in paragraphs 10(l.1) and 10(l.2) of IT-525R that self-employed artists could deduct the CCA on their wardrobe but only if it was acquired specifically to earn self-employment income and used for performances. If a taxpayer acquired clothing that could be used for both his or her business and personal activities, the CRA considered that the expense was of a personal nature and not deductible under s. 18(1)(h) of the Act, which was the case here.

Internal Technical Interpretation, Business and Partnerships Division
March 22, 2011

Income Tax Act: 18(1)(a); 18(1)(b); 18(1)(h); 20(1)(a)
Income Tax Regulations: 1100(1); 8; 12
Interpretation Bulletins: IT-525R, Performing Artists (Consolidated) (para. 10)
Canadian Tax Reporter: ?4753; ?4801; ?4836; ?4902; ?4979; ?4992a
CRA File Number (CRA document is in French only): 2010-0387551I7

I was allowed to deduct sex toys and some reusable costumes.
None of my sex shop receipts were denied.
Also deducted stockings and panties that I stocked for models that came unprepared.
Of course none of it was for me at all.

[kokinme]

Greater Than 10

That is why it has been rated as a 10+ in all official polls.

You can extrapolate that on your own or ask your advisor.

The two scenarios above are both businesses, but one is private while the other is public and thus easier to regulate. Until they find a way to regulate escorts it will continue to be illegal.

On another note, I checked your profile and saw you have a penis greater than 10 inches. Brazil wants it back.

[Rockheart]

You have to register for the GST/HST when your worldwide revenues from taxable sales exceed $30,000 (or $50,000 if you are a public service body) in the past four consecutive calendar quarters or in a single calendar quarter. (Link: http://www.cra-arc.gc.ca/E/pub/gi/gi-116/gi-116-e.pdf).

So an escort is a Public Service Body, Right?

[kokinme]

And I as a client

And I as a client think it is a crime that I am made to feel like I am involved in a crime when especially when both of us are consenting.

What about a pornstar? Or a stripper?

I still want to understand how this works.

I get paid to have sex with my clients and it's a crime.
A pornstar gets paid to have sex, they VIDEOTAPE the crime, and they sell it. And this somehow is legal.

Nice double standard...How did Larry Flint sell this to congress again? Freedom of impression or some bullshit?

[Shyla Wild]

Like as long as there is a camera in the room, you could say u were making porn anyway.

There is really no difference that i can see but you can generally make more money escorting than making porn.

Okay...what if the camera is in the room...and we forget to turn it on? Or we film on his Iphone? Interesting loophole there. I was once told that the only difference between a pornstar and an escort is that a pornstar pays taxes. But I pay taxes....

On another note, I checked your profile and saw you have a penis greater than 10 inches. Brazil wants it back.

Funny thing is, I was chatting with one of my girlfriends about that. She is also part Portuguese like me. From experience Portuguese guys are really hung. Think the "White"-"Black". With also think that our insane size comes from that side. The fact that my Mom was Brazilian only added a couple of inches....

That is why it has been rated as a 10+ in all official polls.

I see my reputation precedes me.

And I as a client think it is a crime that I am made to feel like I am involved in a crime when especially when both of us are consenting.

Don't worry....you are not the only one. Let's be honest, until the government figures out a way to get their cut...and then deal with pressure from organised crime. This is something I have not yet figured out. See, in our captialist society, when something major happens like legalization of Prositution, you have to look at who profits. And who loses. Organised Crime stands to take a hit in their profits with the legalization of Prostitution. I am surprised there was not more pressure from the crime syndicates. Not only that, we do not really know what is legal or not. Permits, zoning, taxing, and who knows what else is coming. This is only the beginning.

I have my accounting with Deloitte. I am very happy with the treatment I get there. My paperwork is always in order, and I have no complaints. I pay them yearly to answer my questions, do my taxes and straight just deal with me.

My Legal is the samething. I pay my firm yearly to deal with all my legal matters. Since they are international, I can get legal advice concerning travelling aboard. I have had my lawyers deal with certain matters for me, that I am sure some here can unfortunately attest to.

My main problem, is putting the two together. I have to be honest. Sometimes they tell me the complete opposite. What do you do then? I use common sense...which most of the time is illegal.

[sensual_lover20]

I am still stuck on Brazil

I wonder if a study has been done on penis sizes. How many people actually have 10+? They say 4 - 6 is normal is all I have really heard.

Crag you have seen thousands, what is your take on this? I trust your opinion more than a theoretical doctors sample extrapolated to a population.