2 Court Cases Involving Tax and Sex

Its Friday afternoon.

HKYB and Commissioner of Taxation (Taxation) [2018] AATA 4770
HKYB and Commissioner of Taxation (Taxation) [2018] AATA 4770 (31 October 2018)

ZHANG AND COMMISSIONER OF TAXATION (TAXATION) [2020] AATA 3008
Zhang and Commissioner of Taxation (Taxation) [2020] AATA 3008 (10 July 2020)

Both of these cases involved brothels, sex workers and GST

A well know forum poster will no doubt chime in with some commentary.

 

Clickbait

 

Was it the tax bit or the sex bit that made you think that way?

 

Sex sells

 

So does saving tax!

 

Hello

 

Imagine if John Hewson was asked which brothel services attracted GST and which did not.

 

Pick up girls and discuss making taxable supplies.
I find the court reporting of oral evidence somewhat CSI rather than ATO

 

could it be the supply of a going concern?

 

recipient created tax invoices may be technically required in the female sex worker industry.

 

One of the arguments in one of the cases was that the 'punters' brought their own sex workers to the property and just rented the room. This would be akin to bring your own food to a restaurant and renting a chair and table to eat it.

 

But they bundled a girl + a room in others. A Kmart red light special.
In other instances the girl dragged them in and in others the landlord facilitated through WeChat for the full package.

Pimping inst the same in the days of GST and taxable supplies