Beyond Decriminalization: Sex-work, Human Rights and a New ...

PIVOT LEGAL SOCIETYSome sex workers worry that information given on a tax return could be used against them in otherways. For example, one sex worker expressed concern about being discriminated against by othercountries where she may wish to travel.A. It’s a really good point, because, yeah, you start doing your taxes, and you start, you havesome card in your wallet. And you are not going to be able to go to America anymore.- female off-street out-call sex workerWhen discussing disclosure of work-related information to Revenue Canada, sex workers expresseda conflict between two competing interests: the desire to become accepted as a legitimate profession,and fear about ongoing discrimination as a result of having prostitution become more public.It is quite likely that increased exposure of the sex industry would create challenges for individual sexworkers, as decriminalization may not reduce the stigma of sex work.Concerns about increased tax law enforcement by Revenue CanadaThe repeal of the criminal laws related to prostitution may make the sex industry more visible,potentially increasing Revenue Canada’s ability to track and assess sex workers. Some participants wereconcerned that legal reform would result in Revenue Canada enforcing tax laws against sex workersmore rigorously. A business owner felt that many sex workers are not ready to pay the amount of taxthat the government demands:A. So 10 grand a month, no matter what wonderful things, awesome things, wouldcome with decriminalization, that is to our benefit, and all those things that wouldgo along with it – I think, the one question – that’s a 45 percent tax bracket. I thinkif you told them – did you know that you would have to give up 45 percent of thatmoney? That’s your tax bracket? First they would never believe you, as most of thesewomen have never paid tax in their lives. And, if you told them, that y’know, thatwhen you go do a blow job then, for $200, you’re really only going to get $110. Theywould laugh at you . . . But I think, if you were able to pull off street sex workers,and after going through every wonderful benefit, they could get from decriminalization,and said, But to be decriminalized, you would have pay the tax man, 40-45percent of your income. Do you still want it to be decriminalized? The resoundinganswer would be no, because at the end of the day, you have to remember why we arein this business – to make money.- female massage parlour owner, former sex workerAs one female street-level sex worker put it, “the disadvantages would be that the government knowsexactly where you are located and . . . tax time!”Concerns about retroactive taxationAn individual who fails to file a tax return as required by the ITA is guilty of an offence, andmay be liable to a pay a fine and/or face imprisonment. 14 Also, they may be subject to penalties thatincrease the amount of tax owing. 15 Revenue Canada can assess individuals for taxes not paid onincome received in prior years. 16 Although sex workers already face the prospect of retroactive taxassessment, sex workers were concerned that the repeal of criminal laws could increase the priority14 Supra note 1, s. 238(1).15 Ibid., s. 162.16 Ibid., s. 152(4): In general there is a three year limitation period in which Revenue Canada can reassess a tax payer. However if amisrepresentation can be attributed to neglect, carelessness, wilful default or fraud, Revenue Canada is not subject to any limitationperiod.166