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

BEYOND DECRIMINALIZATION: Sex Work, Human Rights and a New Framework for Law Reformthe taxpayer to prove Revenue Canada wrong if they believe its assessment is inaccurate. 27 Thereforesex workers should keep a record of each transaction in order to be able to challenge RevenueCanada’s net worth assessment should such a need arise.Some participants felt that sex workers would not accurately report their income or would choosenot to report it. As one sex worker stated:A. As soon as you would legalize prostitution, there’s a black market for it. As soon asyou say, like, oh say its okay, there’s an underground market. Because I don’t knowany ho’s that would like to work – “oh this is what I made tonight” to the governmentor anything like that, right? So then it is going to create a black market, first of all.- male street-level sex workerSome participants noted that sex workers declaring income do not report their full income becausecustomers rarely ask for receipts for the sexual services they pay for. As one massage-parlour ownercommented:A. And of course you are in the same situation with taxes. I mean, yes, they pay theirtaxes. Yeah, on the people that want receipts. No one wants receipts from us. Theydon’t, strangely enough. Two a year, maybe. Can I get a receipt please? Sure, whatwould you like me to put on that?- female massage parlour owner, former sex workerParticipants felt that income was easier to calculate for sex workers who work in an organized environment.These sex workers may have the resources to consult an accountant. As one explained:A. . . . a lot of escorts do pay their taxes. And interestingly enough, the ones that I knowthat pay their taxes most consistently originally worked for agencies. And their agencyowners were the ones that insisted that they go to their accountants and, and, do theirtaxes. And of course the reason being is that they didn’t want anything coming backto them, the agency owners [laughs] so, so, most escorts anyway, or a large number ofthem do pay their taxes. The few that don’t, they really live hand to mouth.- female off-street out-call sex workerUnder the ITA tips count as fully taxable income. For an employee, all tips or benefits, such as giftsreceived in the course of employment, must be included in employment income. 28 Self-employed sexworkers must declare tips as business income. 29 Sex workers noted the importance of tips in earningtheir living and the difficulty of proving this type of income:A. I am sorry to say, on the street with all the girls, it was. No matter what you do, youare in a negotiation with a guy, you don’t get enough money, you get some moneyback in tips and it should not be taxed.A. And so you get more money back, on your tips, than the guy could ever give you in agiven date.- female street-level sex workersA. I don’t mind the income tax thing, but when you get tipped out, . . . like, when yougo see a client, your initial amount agreed on is, like, $200. Well, then, any other up27 Dezura v. Minister of National Revenue (1947) 3 D.T.C. 1101 (Exchequer Court of Canada).28 Supra note 1, s. 5: “a taxpayer’s income for a taxation year from an office or employment is the salary, wages and other remuneration,including gratuities, received by the taxpayer in the year.” Ibid., s. 6: There should be included in employment income “thevalue of board, lodging and other benefits of any kind whatever received or enjoyed by the taxpayer in the year in respect of, in thecourse of, or by virtue of an office or employment.”29 Ibid., s. 9.169