How to write off escort services?

[gollumtroll]

I recently incorporated myself. Is there a way to write off escort services as a business expense? Please PM

[onehunglow]

Part time occasional help!

[JaguarTO]

Lying! Remember the reciepient of entertainment needs to be named in an audit! and CRA will do a random check if you are audited!

[JaguarTO]

Part time occasional help!
You will need to report employment deductions!

[Cycleguy007]

I recently incorporated myself. Is there a way to write off escort services as a business expense? Please PM
Not Legally... :rolleyes:

(I suspect...)

[GDLLover]

If your buying the service to shmooze potential business, it could be included in sales expenses. :rolleyes:

[Nickelodeon]

I recently incorporated myself. Is there a way to write off escort services as a business expense? Please PM

Makes me smile. More power to you, but if I follow the logic you want the Canadian taxpayers to help subsidize your hobbying as a business expense.:o

[JD75]

That's a slippery slope. As noted, there's no legal way to do this.

[Meister]

You could buy gift cards and say you hand them out to your customers as christmas presents. You hand out maybe 4 or 5 to real customers. For the rest you find a SP who would accept them. If you get audited you say you hand them out to some customers. If they want to confirm give them the names of the 4 or 5 customers.

[Meister]

You think auditors will let you choose what they audit?

For companies with Leaf tickets, auditors will ask to see a list of games and the clients who they gave the tickets too.

They will pick the customers to check, not you.

Yes, but are you required to keep track of all the gift cards you give out?

It's like Molson Canadian having to keep track of who they give out all their T-Shirts? Granted it's only 20 bucks a shirt or so, but it adds up if you give away 1000s of shirts.

[Aardvark154]

Not Legally... :rolleyes:

Not in the U.K. or the U.S. and I believe also Canada.

The bottom line on this is that they will catch you and disallow the deduction and impose fines and likely criminal penalties.

[Mencken]

I recently incorporated myself. Is there a way to write off escort services as a business expense? Please PM

Good luck with that...lol. They probably already have your name and social insurance number linked to this post, along with a note to check your file next year.

[spankingman]

Why should I a taxpayer pay for your escort time???????????.You aren't screwing the Govt you are screwing ALL of us. Ya can't have it both ways pal!!!!!!! If ya can't afford it don't do it!!

[tboy]

That's a slippery slope. As noted, there's no legal way to do this.

since it is a legal activity there is no problem writing it off as a business expense as long as it is used to garner customers or for customers. This is no different than taking them to dinner or the theatre or ???

The illegal way is to use a credit card and on most, they write blahblah limosine. Now this would only be a reasonable business expense if you needed to take a limosine to say,the airport or again, take customers out for a night on the town.....

[tboy]

Why should I a taxpayer pay for your escort time???????????.You aren't screwing the Govt you are screwing ALL of us. Ya can't have it both ways pal!!!!!!! If ya can't afford it don't do it!!

ummm we're paying for all sorts of perqs by executives all the time. Not to mention government employee's perqs (like the one who was caught obtaining x number of blackberrys and then selling them on ebay) or the one who was taking vacations to the dominican republic.

Or how about that head of Ontario Hydro who was caught embezzling, was fired, and was also given a golden parachute worth millions.....

Or how about the thousands of welfare cases who get a cheque and buy crack, beer, wine, booze with it?

Or how about the thousands of welfare cases who get a cheque AND work under the table?

Dude, you have to relax, if the little guy doesn't take whatever he can why should the big boys only get the goods?

[Aardvark154]

since it is a legal activity there is no problem writing it off as a business expense as long as it is used to garner customers or for customers. This is no different than taking them to dinner or the theatre or ???To which section of the Income Tax Act (Canada) do you refer?

[Aardvark154]

TBoy, CRA says no. I can post a link to the IT. (I thought that it was deductible myself).Would you please.

[oagre]

TBoy, CRA says no. I can post a link to the IT. (I thought that it was deductible myself).

The IT is probably correct.

First, seeing an outcall escort is immoral, but not illegal. So actually seeing an escort should not give rise to any prohibition.

But what you would be doing be arranging escorts for clients is pimping them the girls. Indictable offence pursuant to s.212(1)(a) of the Criminal Code.

There is a general "public policy" prohibition under the law against allowing the wayward citizen to take advantage of his criminal acts in any way. For instance, no small claims court judge will ever enforce a dealer's drug collection against a defaulting junkie with a judgment or garnishment.

I would think that the IT simply applies that same general legal policy to disallow your deductions for the expenses of supplying whores for your clients.

[lurkerjoe]

However, the IT specifies that services of an illicit nature (such as esorting), is NOT deductible.

Escorting is perfectly legal under certain circumstances. Who can name the 4 prohibited activities related to prostitution?

However, the escort will have to declare the income if she issues receipts.

[wonderboy007]

I just can't believe what people will post.....

[Riley.Royal]

consultant fee.

[eldoguy]

I knew a working girl who escorted, who set herself up as a independent contractor / office tempt. She gave receipts, accepted an a invoice for service rendered! Had her own cc machine.

[onehunglow]

You will need to report employment deductions!

If its not huge amounts and is done infrequently, you don't have to.

On the other hand i was making a small joke.:D Very small i suppose.

[Brill]

I think it's immoral and deceitful to write-off Leaf tickets as "entertainment" for your client.

[Cycleguy007]

I think it's immoral and deceitful to write-off Leaf tickets as "entertainment" for your client.
http://www.topsmileys.net/smilies/happy0188.gif Some would say it was a form of torture these days!

[Aardvark154]

Here is a quick quote of the last sentence of paragraph 19.:

However, payments to what are sometimes called
"escort services" for illicit services of a personal nature are never
considered to be deductible outlays.

The link to the IT is here:

http://www.cra-arc.gc.ca/E/pub/tp/it518r/it518r-e.txt

As I previously said, an IT is not considered the law. It only interprets it from CRA's perspective. If the Income Tax Act doesn't specifically say or imply it, it can be attacked. But that costs money for legal representation. (Also, what Oagre said).Generally Judges give a fair amount of deference to them as well. Not always, but generally.

[poker]

Please PM

Not a bad idea.... I'll bet our PM has a freakin ton of ways to write off his SP services.... let us know what he tells you! :p

Cheers!

[Brill]

No it's not. It is perfectly legal. Who do you think own most of the seats at the ACC? Corporations!

Because it is part pleasure, the government only allows half of the outlay as a deduction.

Our competitors have Leaf tickets, so it is vital. They are an excellent way to treat clients.

The Leafs have to declare 100% of that money as revenue, and people are employed, so society wins.
I didn't say it wasn't legal.

I think it's a sham though, it's a way for taxpayers to subsidize sports, restaurants, etc. that would collapse like a house of cards otherwise.
It's a payoff or bribe that your competitors offer so I suppose we have to match it. It's the grease that keeps the machine running smooth.

Just like Riley's "consulting fee".

[JaguarTO]

Bottom Line.... you cannot write off SP expenses as a legitimate deduction for business expenses unless you call it something else! Then you are subject to an audit … best of luck! They can be ruthless!

[tboy]

The IT is probably correct.

First, seeing an outcall escort is immoral, but not illegal. So actually seeing an escort should not give rise to any prohibition.

But what you would be doing be arranging escorts for clients is pimping them the girls. Indictable offence pursuant to s.212(1)(a) of the Criminal Code.

There is a general "public policy" prohibition under the law against allowing the wayward citizen to take advantage of his criminal acts in any way. For instance, no small claims court judge will ever enforce a dealer's drug collection against a defaulting junkie with a judgment or garnishment.

I would think that the IT simply applies that same general legal policy to disallow your deductions for the expenses of supplying whores for your clients.

Actually, you're not pimping because a) you're not making money off the girls b) you're not collecting money on behalf of the girls and c) you're PAYING the frickin girls...lol

I mean, how many pimps PAY their girls instead of taking money? LOL not many but maybe that's why oagre isn't a pimp, he'd go broke!!!

LOL this is one of the funniest things I've heard .....

BUT under whose judgement is seeing an escort immoral? Yours? Certainly not in the eyes of the law because it is 100% legal.

Funny how a guy comes onto and escort review site and states that seeing an escort is immoral...hmmm makes you wonder doesn't it?

[tboy]

I didn't say it wasn't legal.

I think it's a sham though, it's a way for taxpayers to subsidize sports, restaurants, etc. that would collapse like a house of cards otherwise.
It's a payoff or bribe that your competitors offer so I suppose we have to match it. It's the grease that keeps the machine running smooth.

Just like Riley's "consulting fee".

Just goes to show you how much you DON'T know.One of the reasons that CRA allows for these types of deductions is instead of taxing the money, they allow people to DIRECTLY PUT THE MONEY BACK INTO THE ECONOMY VIA PAYING WAIT STAFF WAGES, COOKS, TAXI DRIVERS, AIRLINES, SPORTS TEAMS, USHERS, HOTEL STAFF,

But you wouldn't think of that.......

[tboy]

I didn't say it wasn't legal.

I think it's a sham though, it's a way for taxpayers to subsidize sports, restaurants, etc. that would collapse like a house of cards otherwise.
It's a payoff or bribe that your competitors offer so I suppose we have to match it. It's the grease that keeps the machine running smooth.

Just like Riley's "consulting fee".

One other thing, do you take your personal exemptions on your income tax return? Do you deduct your RRSP contributions from your income tax?

If so, you're just as guilty as those you're condemning. The ONLY way you can comment about anything is if you take NO dedections and pay your FULL 23 or 30 percent, otherwise STFU already lol....

[hairyfucker]

I write SP's off under therapy, medical, entertainment, and consulting. just spread it aound and justify the concept.

[Kyra.Graves]

Actually, you're not pimping because a) you're not making money off the girls b) you're not collecting money on behalf of the girls and c) you're PAYING the frickin girls...lol

I mean, how many pimps PAY their girls instead of taking money? LOL not many but maybe that's why oagre isn't a pimp, he'd go broke!!!


:confused: Follow the money...

If you are submitting seeing an escort for your own personal expense then it would be disallowed because your own personal entertainment isn't tax deductable.
If you are submitting expenses for entertaining a client you would be making money from the lady, I don't know anywhere in the law it states the lady has to provide cash at the end of the night for you to be pimping. I am not a lawyer and I welcome someones input on this but it seems to me that the money trail would be clear if you were providing escorts for clients.
Client pays you for services provided --> You pay escort for services to client.
In this situation you have acted as an agent, procuring the escort and collecting (before or after) a fee from the person you have made arrangements for such services. You are in fact providing the escort in order to secure the business transaction, that's why the entertainment expense is allowable to begin with (can't write off your social engagements) so you are in fact using the services as a way to provide income.

[freestuff]

BUT under whose judgement is seeing an escort immoral? Yours? Certainly not in the eyes of the law because it is 100% legal.

Funny how a guy comes onto and escort review site and states that seeing an escort is immoral...hmmm makes you wonder doesn't it?

Well, escorts are not 100% legal -- i.e. incalls are not legal, bawdy houses are not legal, solicitation is not legal.

And c'mon, you don't think that prostitution is not immoral? You have no qualms whatsoever to tell other people that you use escorts? The fact that we keep it a secret (and aren't even willing to share our identity with people who do it and are understanding of our actions -- i.e. Terbites) seems to indicate to me that we don't want to people to know because we're ashamed of it. And the reason why we're ashamed is because it's something that society, friends, family frown upon. And why do they frown upon it? I guess there could be many answers but one definitely has to be morality. It just doesn't feel "right." If we took a survey and asked 100 people if they thought whether prostitution was moral or not, I would bet that at least 95 would say it's immoral. And in a society ruled by public opinion, I think that's good enough for me to deem it immoral. Is that going to stop me? No. I'm not a moral person. Just my two lousy cents.

[4tees]

Another point to consider - why would you want to? I've seen small businesses get audited by CRA, and the owners were completely eviscerated by CRA. If they find any sort of escorts being written-off, you can be guaranteed that they'll dig deeper to see if there's any other shit you're pulling. Sure, CRA expects people to push milage allowances, or cars as solely business - but writing-off escorts and being caught by CRA... wouldn't want that.

Also, you should worry about having to keep a paper-trail. Your bookkeeper or accountant my find out. If you're doing taxes on your own, and if you're married - if you get divorced for any reason, someone may be pouring through your corporate finances. I wouldn't want a paper-trail like that anywhere.

[tboy]

Well, escorts are not 100% legal -- i.e. incalls are not legal, bawdy houses are not legal, solicitation is not legal.

And c'mon, you don't think that prostitution is not immoral? You have no qualms whatsoever to tell other people that you use escorts? The fact that we keep it a secret (and aren't even willing to share our identity with people who do it and are understanding of our actions -- i.e. Terbites) seems to indicate to me that we don't want to people to know because we're ashamed of it. And the reason why we're ashamed is because it's something that society, friends, family frown upon. And why do they frown upon it? I guess there could be many answers but one definitely has to be morality. It just doesn't feel "right." If we took a survey and asked 100 people if they thought whether prostitution was moral or not, I would bet that at least 95 would say it's immoral. And in a society ruled by public opinion, I think that's good enough for me to deem it immoral. Is that going to stop me? No. I'm not a moral person. Just my two lousy cents.

Solicitation in private is 100% legal (phone or internet or the privacy of your own home).

Who says I don't want anyone to know? I don't hide it from anyone.....now I don't go out with a decal on the side of my truck mind you, but I also don't have a decal telling the world how many times I take a dump either.

Not ALL families, friends, and members of society frown upon it. I mean hell, just look at the number of members at terb, and how many agencies and women work it.

[Kyra.Graves]

JFK - I am tax deductible, want to write me off? :p

In all seriousness, if you know one provider well enough you could probably find ways to deduct some or all of the expenses by either putting her on the payroll (you better know and trust her), by making a private deal of sorts (has she incorporated, can you provide housing, meals, in lieu of cash payment) or even arranging a charitable donation for a small % of the fee (my personal fav. and something I know many ladies have offered to regular clients).
If you don't know and trust the provider then why risk your business in the first place, is it not worth more than the few hundred (thousands?) that you are going to get as a deductible?

[HOUND_DOG]

I knew a working girl who escorted, who set herself up as a independent contractor / office tempt. She gave receipts, accepted an a invoice for service rendered! Had her own cc machine.
Yes, but now arent you guilty of sexual harassment......?? Those human rights guys are just as bad as the auditors.

[tboy]

:confused: Follow the money...

If you are submitting seeing an escort for your own personal expense then it would be disallowed because your own personal entertainment isn't tax deductable.
If you are submitting expenses for entertaining a client you would be making money from the lady, I don't know anywhere in the law it states the lady has to provide cash at the end of the night for you to be pimping. I am not a lawyer and I welcome someones input on this but it seems to me that the money trail would be clear if you were providing escorts for clients.
Client pays you for services provided --> You pay escort for services to client.
In this situation you have acted as an agent, procuring the escort and collecting (before or after) a fee from the person you have made arrangements for such services. You are in fact providing the escort in order to secure the business transaction, that's why the entertainment expense is allowable to begin with (can't write off your social engagements) so you are in fact using the services as a way to provide income.

Kyra: the issue has moved from the op writing off his escorting costs to whether escorting can be written off when supplied to the client.

Now I'm curious as to how you came up with that I (the arranger payee of the date for a customer of mine) would be making money "off the girl"? I'm not making money off the girl, I MIGHT (and it is a good big MIGHT there) make money if the client does business with me and if they are a regular client, the date could be viewed as a reward for being a long term client. In this case it is COSTING me money not me making money (because the cost of the date would eat into my profit).

As for "a way of providing income", not really. If anything they are a way to reward someone who has done business with me in the past or to garner income in the future (that then it is still the possibility of income, not real income as yet). If you are going to look at it in that light then every restaurant, sports event, theatre, etc should be getting a piece of my profit because they helped me garner income.

I think the term is "at arm's length" and the escort is in no way shape or form helping me make money "at arm's length".

this is all moot anyways because as shown, (thanks to the poster) escorts are not eligible for and entertainment expense......

[tboy]

JFK - I am tax deductible, want to write me off? :p

In all seriousness, if you know one provider well enough you could probably find ways to deduct some or all of the expenses by either putting her on the payroll (you better know and trust her), by making a private deal of sorts (has she incorporated, can you provide housing, meals, in lieu of cash payment) or even arranging a charitable donation for a small % of the fee (my personal fav. and something I know many ladies have offered to regular clients).
If you don't know and trust the provider then why risk your business in the first place, is it not worth more than the few hundred (thousands?) that you are going to get as a deductible?

That's why I say pay with a CC. Everytime I have I get one for a limosine service.......(which IS expensible if that is even a word lol)....

[afterhours]

I'm curious as to how you came up with that I (the arranger payee of the date for a customer of mine) would be making money "off the girl"? I'm not making money off the girl, I MIGHT (and it is a good big MIGHT there) make money if the client does business with me and if they are a regular client, the date could be viewed as a reward for being a long term client. In this case it is COSTING me money not me making money (because the cost of the date would eat into my profit).......

seems to be a weak argument; any agency can be not profitable if their overhead is too high, but the owner still is living off the avails..there is also always an ATTEMPT to commit an offence, which may be made out quite well (to simplify evidentiary part of it, imagine that you admit discussing with your business partner how you gonna profit by way of providing your customers/suppliers/whatever with escorts).

that being said, it's hard to imagine anyone being prosecuted for that on these facts; being raped by Revenue however is a very real possibility

[Seattle]

....it can be "casual labor", up to $5k a year I believe.

[yababy1956]

easiest way is to draw cash paid to yourself as mileage, I believe that it is 53 cents per kilometer, no tax to you and a legitimate expense for the corporation:D

[GotGusto]

How do I write off when I get ripped off during an SP encounter? I just got jacked out of $160. I'm in Los Angeles right now and a skank and her big pimp just punked me out of cash a few hours ago. It's 4:46am in LA right now. It's been a crazy day/night...

I fucking hate poor people. I pray that I'm related to these guys http://www.ananova.com/news/story/sm_3584037.html?menu=

[tboy]

seems to be a weak argument; any agency can be not profitable if their overhead is too high, but the owner still is living off the avails..there is also always an ATTEMPT to commit an offence, which may be made out quite well (to simplify evidentiary part of it, imagine that you admit discussing with your business partner how you gonna profit by way of providing your customers/suppliers/whatever with escorts).

that being said, it's hard to imagine anyone being prosecuted for that on these facts; being raped by Revenue however is a very real possibility

You missed a key point: I am not an agency owner, I am an owner of a company that makes widgets and I'm paying for an escort for one of my valued current or future customers.....(that's the hypothetical scenario anyways).

[Stoo]

...thinking that maybe escort services would be deductible like any 'meal & entertainment expense' which is at a 50% rate.

I think under RevCan's rules, a meal must be swallowed in order to qualify. As such, DATY wouldn't qualify. :cool:

[eldoguy]

Yes, but now arent you guilty of sexual harassment......?? Those human rights guys are just as bad as the auditors.

They would give the lady a good scolding for her enterprising skills!

[smylee52]

.

Book Asian Agencies through Craigslist and you will get lots of escort services that will end up being write-offs.:p.

[HAMSTER INSPECTOR]

Tell the government that you took out an option on a lush rainforest property for the purpose of prospecting for oil. You had to bear the cost of sinking a pump into the property but there was no oil to be found. Since you found no oil on the lush property, your option expired and the owner of the property made you return it to its previous state because you you left a gaping open hole after you left and it was accesable to children.

[Aardvark154]

Sometimes, but they have to reflect the intentions of Parliament, not the CRA.Indeed, but generally the IT does that and certainly that is always the intention.

[Aardvark154]

Another point to consider - why would you want to? I've seen small businesses get audited by CRA, and the owners were completely eviscerated by CRA. If they find any sort of escorts being written-off, you can be guaranteed that they'll dig deeper to see if there's any other shit you're pulling. Sure, CRA expects people to push milage allowances, or cars as solely business - but writing-off escorts and being caught by CRA... wouldn't want that.
Absolutely, the same for the IRS and Inland Revenue. I'm amazed (unless this is one of those theoretical discussions) that some folks here want to live so dangerously.

[4tees]

JFK - I am tax deductible, want to write me off? :p

In all seriousness, if you know one provider well enough you could probably find ways to deduct some or all of the expenses by either putting her on the payroll (you better know and trust her), by making a private deal of sorts (has she incorporated, can you provide housing, meals, in lieu of cash payment) or even arranging a charitable donation for a small % of the fee (my personal fav. and something I know many ladies have offered to regular clients).
If you don't know and trust the provider then why risk your business in the first place, is it not worth more than the few hundred (thousands?) that you are going to get as a deductible?
The issue to the provider is this... If I make such arrangements with you and I get audited and CRA sees my invoices/cheque stubs/general paper-trail to you and finds it the slightest bit suspicious, CRA knocks on your door to either clear-up the issue or do an audit on you. Do you want to put yourself at that fairly substantial risk? It is somewhat common knowledge that many people who get caught by CRA do not get caught because of their returns or red flags within CRA, they get caught in the field because someone you did business with gets audited, and then they come to see you.

[Aardvark154]

In all seriousness, if you know one provider well enough you could probably find ways to deduct some or all of the expenses by either putting her on the payroll (you better know and trust her), by making a private deal of sorts (has she incorporated, can you provide housing, meals, in lieu of cash payment) or even arranging a charitable donation for a small % of the fee (my personal fav. and something I know many ladies have offered to regular clients).
But now you are getting into the realm of tax fraud and criminal penalties, not just repayment and administrative penalties.

[marikiss]

There are things like "new office chairs" "computer repairs" "software" If you know an SP you could buy her expensive things she might need like a new laptop, if the audit comes, the laptop slipped out of your hand into a puddle. you still have all the paperwork, for it. you had a networking issue and you hired a guy from craigslist to fix it, he seems to have moved. There is also getting a massage, as a medical expense. If you're going to do it, it's best to spread it around as much as you can. make sure to take advantage of say rebates buy a new lazer printer for the office and it costs $400 but don't mention the mail in rebate for $150. either way you do it, it's risky as hell. it might be an idea to take an accountant out for lunch make a joke about hookers then talk about deduction idea's.

[Aardvark154]

either way you do it, it's risky as hell. it might be an idea to take an accountant out for lunch make a joke about hookers then talk about deduction idea's.If they have the brains God gave an anteater, they will say what has already been said here - what you are proposing is illegal and I would be libel myself for criminal charges if I assisted you in a violation of tax law. Or the polite version ‘wouldn't that be wonderful if we could, but you can't so don't try it.’

[jiiimmm]

at the end of the day you can write off whatever you like, you're only a thief if you get caught.

[thompo69]

You missed a key point: I am not an agency owner, I am an owner of a company that makes widgets and I'm paying for an escort for one of my valued current or future customers.....(that's the hypothetical scenario anyways).

I'd suggest reading sections 212(1)(a) and 212(1)(h) of the Criminal Code, as both would appear to apply to the hypothetical scenario, and both come with a 10 year jail sentence.

[Aardvark154]

at the end of the day you can write off whatever you like, you're only a thief if you get caught.To quote the Dirty Harry movies "you've got to ask yourself one question: Do I feel lucky? Well, do ya. . ."

Most people who cheat on taxes doen't do it just once and they don't do it for $20.

[xix]

I recently incorporated myself. Is there a way to write off escort services as a business expense? Please PM

Everytime some asks me this question I have concluded the following.

1. They are gay.
2. They are cheap, they think the world owe's them alot, low self-esteem and doesn't want to get laid with an escort/MP but has no choice to get laid with one because they cannot pick up any decent looking girl for them just to date. Basically they can't find a date and want a 10 girl but only if the taxpayer will pay for it.

NO.

[nottyboi]

I was reviewing a CRA Interpretation Bulletin ("IT") on entertainment expenses thinking that maybe escort services would be deductible like any 'meal & entertainment expense' which is at a 50% rate.

However, the IT specifies that services of an illicit nature (such as esorting), is NOT deductible.

Frankly speaking, the IT is not law and can be challenged. I dont' think that escort services are specifically exempt in the Income Tax Act.

If prostitution is not legal, then one could theoretically challenge the denial of an escort expense to entertain a business client visiting from out of town, for example.

The basic rule for any deductible business expense is that it was incurred for the purposes of earning income from a business.

The second rule is that it is reasonable (that's why you can write off unlimited auto expenses - such as Ferrari's; there are limits imposed).


I don't think escorting is illegal is it? Ergo it is legit.

[Aardvark154]

I don't think escorting is illegal is it? Ergo it is legit.
Take a look at the bottom of paragraph 19 of the IT from CRA.

http://www.cra-arc.gc.ca/E/pub/tp/it518r/it518r-e.txt

"payments to what are sometimes called "escort services" for illicit services of a personal nature are never considered to be deductible outlays.

In this case the word “illicit” is superfluous to the meaning of the sentence. You are not going to get very far other than spending a good bit of money to loose in court by arguing that the meaning of "illicit" in the IT is synonymous with illegal and that since outcall is not illegal. . .

[4tees]

I don't think escorting is illegal is it? Ergo it is legit.Health Club and Golf Club memberships are legit/legal, but you can't write them off according to CRA rules. One does not equate to the other.

[tboy]

Take a look at the bottom of paragraph 19 of the IT from CRA.

http://www.cra-arc.gc.ca/E/pub/tp/it518r/it518r-e.txt

"payments to what are sometimes called "escort services" for illicit services of a personal nature are never considered to be deductible outlays.

In this case the word “illicit” is superfluous to the meaning of the sentence. You are not going to get very far other than spending a good bit of money to loose in court by arguing that the meaning of "illicit" in the IT is synonymous with illegal and that since outcall is not illegal. . .

Just a note: CRA and the Legal communities often work independant of each other. I know in many cases, CRA doesn't report what would obviously be funds garnered from illegal activities to the police/rcmp. Their main concern is collecting their 30%. If you do that, their happy.

What I mean is they may deam something illicit or illegal even if it isn't illegal in a criminal sense.

Which brings up an interesting argument: who makes the judgement as to what is illicit or not? Should an action or object be judged on puritanical values? So, a gift to your church is fine but a visit to an escort isn't?

[Pro007]

Its not deductible, period. However trying to hide the fees under diffirent catigory is taking a risk of beeing questioned about it by CRA, even under a corporation. I dont advise my clients to do something foolish like this and claim such expense of a questionable nature, if paying for the service in cash forget about it, also you need to keep the real name of the recepient, which i guess its not easy to get from SP. If the SP thinks or knows that you will deduct the fees she gets from you, most propable she will not see you again becaus she may got audited for undisclosed income, and thats a big deal to deal with CRA.

Pro007

[eldoguy]

They would give the lady a good scolding for her enterprising skills!

A future lady CEO in the making!

[xix]

I recently incorporated myself. Is there a way to write off escort services as a business expense? Please PM

It is funny how many people here come to ask this question per month. I even met I guy who wanted to write off diner or lunchexpense when he went out on dates with regular woman.
That was a sign of "Cheap" I laugh at the guy and told him that was a very low shallow joke.
He is still a virgin.

[nova5]

I recently incorporated myself. Is there a way to write off escort services as a business expense? Please PM
--
The short answer is no!

[oagre]

Actually, you're not pimping because a) you're not making money off the girls b) you're not collecting money on behalf of the girls and c) you're PAYING the frickin girls...lol

I mean, how many pimps PAY their girls instead of taking money? LOL not many but maybe that's why oagre isn't a pimp, he'd go broke!!!

LOL this is one of the funniest things I've heard .....

BUT under whose judgement is seeing an escort immoral? Yours? Certainly not in the eyes of the law because it is 100% legal.

Funny how a guy comes onto and escort review site and states that seeing an escort is immoral...hmmm makes you wonder doesn't it?

Hey, doofus? You want to argue fine points of law with me and scold me, then read the fucking statute first!

S. 212 (1) (a) applies to PROCURING hookers to have intercourse with any other person. You don't have to be paid to commit this crime. It's an indictable offence and carries a penalty of up to 10 years jail.

Still want to push your useless argument at me and waste everybody's fucking time??