What if I had a business whose legality was in question? Should I pay taxes?

Question

OK, honesty here-

I want to start an escort business as a side business. If I pay taxes on what I make, wouldn't it then be discovered what I'm doing? Or if I don't pay taxes, no one will ever know.

Any advice?

Answer 1

Move to a tax haven like Monaco or one of the Caribbean islands. That way you can have your cake and eat it or in your case, your sausage and blow it.

Answer 2

The Personal Services Industry is a legitimate business, and anyone who advises you to not pay taxes is as guilty as you are for not paying them. An Escort is an hourly paid service. Soliciting prostitution is a crime.
That becomes a real big stinking problem only if you get caught!
Besides having to pay the taxes, interest, and a 10% penalty, you could have to pay a really big fine, and spend some time in jail.
I am not sure about the penalty for prostitution.
You can find out for yourself at:
http://laws.justice.gc.ca/cgi-bin/notice.pl?redirect=/en/I-3.3/index.html

Answer 3

The government addresses this in publication 17. They want you to pay taxes on any money you earn no matter how you earn it. For example if you stole something, you have to put down the fair market value of the item as income.

Answer 4

pay your taxes. the government will mind its business unless you don't give them a cut. all the infamous brothel rings were bust up because they didn't give Uncle sam his due.

there are escort services everywhere, and they stay open and legal because they pay their taxes - money made from men who pay for the company of a woman - what they do privately is their own business

Answer 5

Pay your taxes. Don't make a shaky situation worse. Find an ambiguous name and description for what your business does, to put on your tax return.

Answer 6

www.irs.gov