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

More documents

Recommendations

Info

PIVOT LEGAL SOCIETY170and above over that is your tip out . . . $100, $200, $300. I mean, that is game. Themost money you get, for the least amount of work. And then that money shouldn’t betaxed, because you can’t regulate it. And you can’t prove it (female escort).- female off-street out-call sex workerA group of sex workers described how fees and tips were treated at one establishment.A. Who was talking about Ottawa? That massage club in Ottawa? Remember?A. Yeah.A. It was at the pink house session, right? And it was so much, they were paid theminimum, whatever it was. As the massage. And they were taught how to do a lightmassage thing? And then the rest was, the rest.A. Right.A. So it could be, like, priceless. Anything that’s sexual, on top of it, like giving a clienta massage, or whatever your specialty was. Card reading, counselling session . . . Andthat’s what you are paid on. And the sex is a gratuity, an extra, a tip, and no-one’sbloody business.- female off-street out-call sex workersA group of sex workers commented that sex workers’ tips could be taxed the in same way as tipsearned by waiters or waitresses.A. When they legalized liquor, they made bars, then, y’know, paid people to work in thebars, and y’know, you make tips at the bars. So shouldn’t it be somewhere along thatlines? Like legalize prostitution, you do it here, this is your wage, and then, this isyour extra that you make. Then you claim off of that.A. Don’t the waitresses have to claim a portion of their tips?A. They have to claim all of their tips.A. Exactly. Well they should have to claim off of that.A. In big fancy hotels, and stuff, waitress and what-not, you are charged x amount ofmoney, automatically, for taxes on your tips.A. You have to pay that much taxes, just because – that’s because that’s sort of thecommon level that everybody gets tipped up?- female off-street out-call sex workersSome participants were concerned that Revenue Canada would rely on informed estimates aboutwhat a sex worker earns and then may disbelieve sex workers if they report different amounts:A. It wouldn’t be like that. It would be like – the government would say so much for ablow job, and that’s how much for this. Because they couldn’t do it in any other wayand if they did, like, everybody would be making something different, but paying thesame tax.- male street-level sex workerA. Well, because it would be . . . you would, there would be so much . . . you know, theycould . . . there would be so much other legal things that they could go after you on.Like, they could say, “Okay, we . . .” Okay, so say you have a slower week . . . month,or you didn’t make as much money for a couple of months or whatever like that, thenthey could go . . . they could harass you, and do audits on you and all this bullshitthinking that you are lying and you are claiming what you should be claiming. Thatwould be not good.- female street-level sex worker
BEYOND DECRIMINALIZATION: Sex Work, Human Rights and a New Framework for Law ReformJudging by the experience in other countries, 30 this concern about the prospect of arbitrary standardsbeing used to assess sex worker incomes is well founded. Current Canadian taxation practices givefurther substance to these concerns. For example, with respect to claiming income from tips, RevenueCanada accumulates data on the average amount of tips earned by workers in a particular profession,and then compares amounts claimed against what these data indicate. With respect to prostitution,this could be a matter of particular concern given the considerable range in tips across the sex trade. 31Tax deductionsBusiness expensesUnder the ITA, taxpayers earning business income are entitled to deduct expenses incurred forthe purpose of earning business income. 32 All business expenses can be deducted, except for deductionsspecifically prohibited by the ITA. Personal or living expenses cannot be deducted from businessincome, 33 and all deductions must be seen as reasonable in the circumstances. 34 Sex workers earningbusiness income have a right to deduct their business expenses if they file income tax returns. TheSupreme Court of Canada has held that, if business income is taxed, deductions for business expensescannot be prohibited on the basis of public policy considerations. 35 Expenses for condoms, lubricants,sex toys, costumes, taxi rides, classified ads, and other items may be deductible business expensesunder the ITA. For sex workers working out of their homes, the home office exemption allowing aportion of rent or mortgage to be deducted would be available. 36 While an argument can be madethat expenses for enhancing a sex worker’s appearance, such as breast implants or gym memberships,are business expenses, Revenue Canada may consider these to be personal or living expenses. The linebetween personal or living expenses and business expenses is blurry, and is determined on a caseby-casebasis. The test is whether the expense was incurred for the purpose of gaining or producingincome from a business. To determine whether the test has been met the court may ask:1. What is the need that the expense meets?2. Would the need exist apart from the business? and3. Is the need intrinsic to the business? 3730 The English Collective of Prostitutes and US PROStitutes Collective website states that some of the work they do is “helpingwomen fight extortionate tax demands.” The site goes on to say that “women have successfully challenged tax demands based onbiased assumptions about what sex workers earn rather than the facts on the situation of each individual woman.” “Summary of Workby the English Collective of Prostitutes and the US PROStitutes Collective” online: All Women Count .See also Petra Östergren, “Sexworkers Critique of Swedish Prostitution Policy” online: Petra Östergren .“The legal situation regarding taxation is unclear and varies from city to city. Some tax authorities will leave sex workers alone, otherswill seek them out and tax them according to an arbitrary estimate. This worries sex workers. Some of them have been subjected tothis procedure with disastrous financial consequences. Others have only heard about it and worry it will happen to them.”31 Some sex workers in massage parlours stated that they earned up to $10,000 month while sex workers in other areas of the industry,such as the street level, earn barely subsistence amounts.32 Supra note 1, s. 18(1)(a).33 Supra note 1, s. 18(1)(a).34 Ibid., s. 67.1: “In computing income, no deduction shall be made in respect of an outlay or expense in respect of which anyamount is otherwise deductible under the Act, except to the extent that the outlay or expense was reasonable in the circumstances.”35 The Supreme Court of Canada confirmed in its decision in 65302 B.C. Ltd. v. The Queen, 99 D.T.C. 5799, that taxpayers areallowed to deduct expenses incurred for the purpose of earning income from an illegal business activity. The Court noted that eventhough the deduction of such expenses might appear to frustrate the intent of the Criminal Code, the “tax authorities are not concernedwith the legal nature of an activity” (at 5811).36 Supra note 1, s. 18(12).37 Scott v. Queen, F.C.A. 98 D.T.C. 6530 at para 9.171
Page 4:
PIVOT LEGAL SOCIETYPart 2: Municipa
Page 21 and 22:
BEYOND DECRIMINALIZATION: Sex Work,
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120: BEYOND DECRIMINALIZATION: Sex Work,
Page 169: BEYOND DECRIMINALIZATION: Sex Work,
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229:
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?