Escorts as business expense?

[Lou Siffer]

Just wondering if anyone pays with credit cards for themselves or their business clients so that they can claim the expense. Or, if any agencies/SPs provide receipts. I know this is a dumb question, but what the heck, it's out there for discussion...

G

 

[S.C. Joe]

I don't think its so dumb, I am sure it happens. In Vegas all the time, same in NY city.

Besides a "business expense" and you could claim it is, sometimes a company gives the employee so much to spend on a business trip.

If you are meeting a important client, a guy may want to have a nice looking lady with him, say during a meal with the client.

BTW...this is why and how escort companys stay in business in the USA, even thou some like to think getting an escort in the states is illegal, nope. Business men do it all the time...but maybe not always "for business"

 

[3Tees]

Run my own business, and wouldn't have the courage to do it. Bookkeeper and accountant regularly go through my books and often ask what various expenses are - while they accept most any answer, I'd still be scared. For example, I could say that it is a "coaching session", training or whatever. I would have to ensure that that the SP used a "discrete" and appropriate billing name, as opposed to something like "Screw My A** Consulting Group."

If I did this, I would ask the agency to write-up a receipt, but if they were not used to doing this, I would "fake one" of my own to support the credit card transaction. Of course doing this is highly illegal, and if I were audited and caught, I would not only have to pay fines and penalties, it would be embarrassing to be caught for this reason.

Overall, I would rather not associate my business with my hobby in any way.

 

[tboy]

For the record, the times I've used a CC to pay to play the bill comes up as limosine service and that is an eligible business expense. However, make sure you write down the reason for the service because if they ask, and you say: oh, I took a lady friend out...they say Uh uh, disallowed.

 

[HafDun]

Hiring an escort is a legal transaction so there is no reason why it would not qualify as a ligitimate business expense if it was done in the course of business (gifts & promotion expense).

The only way to legitimize hiring an escort for your own personal pleasure might possibly be if your business was to research the escort business. I suppose an undercover cop can write off their donation if the department isn't re-imbursing them.

Note to self.. time to sign up for that law & security course.

 

[Never Compromised]

as long as it is for a client, then it is the same as buying hockey tickets or a golf game or dinner. Claim it.

 

[3Tees]

as long as it is for a client, then it is the same as buying hockey tickets or a golf game or dinner. Claim it.

Actually, you can only claim 50% of the expense in this instance, so you may want to be careful in how much you indulge your clients.

Here's another issue - CRA often picks-up businesses to audit based on the audits they are currently doing. Say they are auditing my business and see that I have $5,000 in Credit Card receipts at "TERB Entertainment Consultants Inc". Perhaps they then find that my receipts from them are doctored, not detailed enough, or that I can't substantiate or verify the clients that I entertained there. Perhaps they have not been charging me GST when they should, or that they have been charging me GST without a GST number. Before you know it TERB Inc suddenly appears on CRA's radar screen for an audit.

My sense is that agencies and independents do not like to have their names and receipts kept as official records of other businesses. They are largely cash businesses that may not have record keeping the way most businesses do.

Besides, I would really hate to put a client on the spot by having a CRA auditor call them and say "We're auditing 3-Tees inc. There's a $500 charge for Greek Food, can you confirm that you did indeed partake in some sort of Greek activity?"

While the chances of this happening are fairly slim, it is another reason why I prefer to keep business and pleasure separate.

 

[a 1 player]

There's a $500 charge for Greek Food, can you confirm that you did indeed partake in some sort of Greek activity?"

While the chances of this happening are fairly slim, it is another reason why I prefer to keep business and pleasure separate.

That would be a devil's hell come to life.

 

[Aardvark154]

Just wondering if anyone pays with credit cards for themselves or their business clients so that they can claim the expense. Or, if any agencies/SPs provide receipts. I know this is a dumb question, but what the heck, it's out there for discussion...

Actually depending upon the tax regime you're under it is more complex than you think. Did you discuss business with the clients immediately before or afterwards, or even while you were all otherwise engaged? - If you didn't - it's not deductible. Did you go? - Did you have a good time? - if so, your share is not deductible. Further as has already been mentioned even if it is deductible only half of it can be deducted.

Then comes the realm of the practical do you want to defend these deductions at audit?

 

[3Tees]

Then comes the realm of the practical do you want to defend these deductions at audit?

Just say to the auditor, "Look that expense is no more than what you are doing to me right now - screwing me completely up the ***"

 

[train]

About 15 years ago the VP of Sales of Hartz Mountain ( large pet supply etc company) in the US was canned for supplying escorts to big clients. It made the newspapers at the time because they were a public company.

It's illegal in the US so if you do it a lot in Vegas I'm not sure it's the smartest idea in the world to leave a paper trail. ( BTW it's illegal in Vegas but legal in a neighbouring county where all the brothels are).

 

[A-ROD]

I can see myself filling out my expense report.
1 - DATY $150.00
1 - BBBJ $ 200.00
1 - GREEK $ 200.00

The ladies in accounting would have a lot of questions for me...

 

[LancsLad]

I can see myself filling out my expense report.
1 - DATY $150.00
1 - BBBJ $ 200.00
1 - GREEK $ 200.00

The ladies in accounting would have a lot of questions for me...

Or offer you a better rate.




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[A-ROD]

Or offer you a better rate.




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Nobody in that department worth $10 ...

 

[JenniferWyte]

no , i dont think so lol.