Monday, June 1, 2009

Sex Work and Canada Revenue

Can Sex Workers submit a tax return?

Yes, Sex Workers can file taxes and for many people there could be benefits for doing so. There are many government programs that are only available to people who file a tax return. Also, if you want to buy a car, home, or apply for a loan you will need to have an Income Tax Summery, which you will receive each year after you file your taxes.

Will Sex Workers face legal consequences if they file their taxes?

No, Canada Revenue is not concerned with the employment that generated income.(1) However, you could be charged with tax evasion if you do not file taxes and are caught having an income that you are not reporting to CRA. This could result in fines or even jail time. If you are working in an agency or massage parlor and you have a license CRA theoretically has access to the City of Calgary’s data base of people with adult services licenses. (2) If you are working for an agency or parlor that is giving you a paycheck and a T4 the income is being reported to CRA and it would be advantageous to prepare a return.

What are the benefits of filing your taxes?

In some cases you can use your business tools as a write off, such as vehicle, advertising, or computer. Just make sure that you keep your receipts.

If you have children you could apply to receive Universal Child Tax Benefits and also Alberta Child Tax Credit. You also will need to have your taxes completed if you were to decide to return to school and wanted to apply for Student Loans and Bursaries. Some community services are only available for people who have a tax summery, so it is good to have this available in the event you ever need to apply for assistance.

If you pay your taxes, you will be contributing to Canada Pension Plan and will be eligible to receive CPP. This will entitle you to receive financial assistance when you retire.

Where can I receive assistance for tax preparation?

The Shift program is able to provide assistance for people with basic tax returns. This includes people with T4s this may include people paid by an agency or massage parlor. We can also assist people currently receiving social assistance, or people with low income. If you are an independent worker it would be advisable to contact an accountant in order to maximize your possible business expenses and refund.

Sources:
Sex Professionals of Canada. Tax Return Information for Sex Workers retrieved 03/23/09. http://spoc.ca/resources.html
STAR: Sex Trade Advocacy and Referral. Money Matters. (September 2004) Retrieved 03/23/09 http://web2.uwindsor.ca/courses/sociology/maticka/star/pdfs/money_matters_prnt.pdf

6 comments:

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cytotec said...

Thank you very much for sharing information that will be much helpful for making coursework my effective.

Unknown said...

Good it's about time that they pay for the insurance on any sexauly transmission d sdt that they expect free health care and not pay taxes and should be public information including they clients and there medical reports

Unknown said...

Good it's about time that they pay for the insurance on any sexauly transmission d sdt that they expect free health care and not pay taxes and should be public information including they clients and there medical reports

Unknown said...

Some is medical such as prostate cancer

Unknown said...

If these sexworkers do not give full disclosure about any think it is rape and or atemted murder and if given hiv is murder and should be the full sentence male female or transgeder God and the devil both agree that people have free will and lack of transparency is dangerous and hiding behind pircely laws is wrong no such thing as confident that would be rape