Taxation Information For all workers & Owners

[Mrs Langtrees]

I have posted a copy of my letter from the taxation deptartment to assist owners with the new compliance requirements.
I went to a meeting of owners in Melborne in November and found it very informative and helpful and would urge all owners to attend, so all points of view can be heard.
Mary-Anne Kenworthy
20 January 2006

Attention: Mary Anne


Dear Mary Anne

RE: Adult Services Industry Seminar

As you may be aware the Australian Taxation Office is currently involved in an extensive compliance program within the Adult Services Industries.

To date much of the focus has been in the eastern states, with an escalating compliance program now well underway. It is now appropriate for the ATO to have similar discussions within the Western Australian Industry. The ATO welcome input from owners with respect to these activities, so as to minimise the level of impact this program may have.

Therefore the ATO is conducting an industry meeting for owners and/or managers on Thursday 16th February 2006 at 1pm at the Acacia Hotel, 15 Robinson Avenue, Perth in the Montana A room on the ground floor.

Topics to be discussed include:

· the ATO view of the taxation treatment of the various payment arrangements within the brothel and escort industries
· the cash economy project focusing on the reporting of all relevant transactions and Pay As You Go compliance with respect to staff
· the Australian Business Number (“ABN”) requirements for transactions between the house and the service providers
· the ATO educational and compliance activities with respect to establishing contact with the workers in all establishments regardless of payment flow within the establishment
· the ATO’s attitude towards establishing an industry wide solution with respect to previous and future taxation compliance
· open forum regarding industry concerns and proposed solutions with respect to these activities; and
· future communication options within the Western Australian industry.


To assist in preparations for this event, it would be appreciated if you could confirm your attendance via the project email AdultIndustryProjectTeam@ato.gov.au or phone Pauline Samra-Dardis on 0401 140 527 or Allison Gamer on 0421 614 217.

Please note that this and the service provider seminar discussed below is a voluntary registration process.

The ATO looks forward to establishing meaningful two way dialogue with the Western Australian industry owners commencing with this event.

Please also note that the ATO is offering the opportunity for service providers (and managers of adult service businesses) to attend a seminar on Thursday 16th February 2006 at 4.00pm at the same venue. At this seminar there will be an open dialogue as to the effect of the proposed ATO activities for service providers within the WA adult services industry.

If you have any concerns or comment you would like to make about this process or any other matter pertaining to your business, please contact the Project team coordinators by email or phone as mentioned in the above details.

Yours Sincerely


Mark Jackson
Deputy Commissioner of Taxation


per

Allison Gamer

 

[Mrs Langtrees]

As you may be aware the Australian Taxation Office (“ATO”) is currently involved in an extensive compliance program within the Adult Services Industries.

As a result of significant activities planned for 2006 in the Western Australian region and across Australia, the ATO would welcome input from service providers and worker organisations with respect to these activities, so as to minimise the level of impact this program may have.

Therefore the ATO is conducting an industry meeting for service providers and workers organisations on Thursday 16th February 2006 at 4pm at the, Acacia Hotel and Function Centre, 15 Robinson Ave, Northbridge, WA in the Montana A Room on the ground floor.

Topics to be discussed include:

· the ATO view of the taxation treatment of the various payment arrangements within the brothel and escort industries
· recordkeeping, GST registration and Australian Business Number (“ABN”) registration
· the ABN requirements for transactions between the house and the service providers
· the ATO educational products
· the ATO compliance activities with respect to ABN registrations within all payment arrangement type houses
· the ATO’s attitude towards establishing an industry wide solution with respect to previous and future taxation compliance
· open forum regarding industry concerns and proposed solutions with respect to these activities.

To assist in preparations for this event, it would be appreciated (but strictly voluntary) if you could confirm your attendance via the project email AdultIndustryProjectTeam@ato.gov.au or phone Pauline Samra-Dardis on 0401 140 527 or Allison Gamer on 0421 614 217.

Please note that this is a voluntary registration process.

If you have any concerns or comments you would like to make about this process or any other matter pertaining to your business, please contact the Project team coordinators by email or phone as mentioned in the above details.

 

[Mrs Langtrees]

Yesterday the taxation department held a 1pm meeting for owners, then a 4pm meeting for private operators, then haeld a 6pm meeting for the langtrees Ladies to up date every one on our taxation liabilities and how they are going to view them in the future.
I went to the 1pm meeting which had about 55 in attendance and the head of the task force Mark did a great presentation and explained our obligations very clearly.
I was lucky and had attended the meetings in Victoria last November, and I can remember how i thought at the time i first heard all this information.
Diaster was my first reaction but after I calmed down a little i realised that the whole suituation was unaviodable and over the next two years would be implemented regardless of how I thought and that it was better to get on board now and therefore protect my business and income and the business that the ladies have created for themselves through langtrees.
The great news was the ATO have clearly stated that they reconize the service providers as independent business or contractors.Had this not been the case no owner in Australia could survive the requirements if our service providers were reconised as employees with the super, workers comp, and sick pay requirements their would not have been 20 cents in the $$$ for the ladies.
The bad news was they are going to enforce the GST ruling that anyone our business pays money to must produce a invoice with a ABN number or we are responsible to with hold 48.5% of the money owed and remit this to the taxation department.
As business owners if we don't the taxation department can hold us accountable for up to 75% of the amount that we don't keep.
have got busy so will finish this report tonight.

 

[baal6007]

Hi,

I still find it confusing that they can charge tax on something that they don't even acknowledge as a legal activity.

They've dragged their feet on legislating a means to regulate the industry, swept it under the rug, but apparantly it's ok to collect tax on a service that still say (officially) is illegal?

Makes almost no sense to me.

Anyway my 2c

 

[krystal@secrets]

I must admit that Im happy about having to pay tax etc but im totally confused on what I have to do lol

 

[Mary Anne PA]

krystal, the guys that came here said they are quite happy to do oen on one consultation. Just need to get their number.

 

[krystal@secrets]

That would be great.