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LadyEllen -> RE: just wondering about the IRS (11/5/2006 6:59:10 AM)
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In the UK, the Inland Revenue (equivalent of the IRS) are wonderful people.....
All income must be declared and tax paid on it. Thus, even if you are operating an illegal business, you must pay tax on your profits and income. We have the paradoxical position, that prostitution is illegal, but when the prostitute is arrested, the IR are involved in order to recover tax on her income. Whilst a madam running a brothel is charged with living off immoral earnings, the IR can take a share of those earnings without incurring such a charge. I find this bizarre - either those earnings are illegal, or they are not?
Before I get flamed, I do know and realise (as many here will hopefully attest), that Pro-Dommes are not prostitutes OK? But if one looks at the instance of pure prostitution, sex for payment, then its clear that a Pro-Domme, like anyone else, is held liable for tax on her earnings, whatever the official view on her profession. The IR over here have recently judged that tips to waiters/waitresses et al, is also income on which tax must be paid - I find this totally wrong, as this is my personal gift for excellent service (I dont tip everyone), not money which I intend to have taken by a government which played no part in the delivery of that excellent service.
The IR also specialises in full audits; basically they observe one's spending behaviour via electronic surveillance on card purchases, HP and credit etc to identify those living beyond their apparent means, and then require full proof of from where the money came for these purchases. We also have the proceeds of crime law here, so they either get you convicted for tax evasion and you have to pay the tax plus fines plus interest, or they take everything you have for which you cannot prove legitimate income on which tax was paid. How I love Big Brother - I realise these measures are in place to combat organised crime, but it just seems to me its the little people as usual who are targetted, to prove the effect of the department that does this sort of thing, whilst the big boys get away with it and more every day.
E
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