Posts Tagged ‘Prostitution income’

Tax free prostitution in Norway – no VAT, no income tax

December 21, 2014

I am not sure if this is a blow for women’s rights or just the consequences of laws only half-thought through or a case of “the law being an ass”. In any event this case does not quite uphold the majesty of the law.

If prostitution income is not subject to income tax because buying sex is a crime, then the proceeds from the sale of stolen property cannot either be subject to income tax. Moreover the selling of stolen goods does not need to attract VAT!!

The Local: A prostitute won a landmark victory against police in an Oslo court on Wednesday, when it ruled that police were wrong to claim taxes for the money she had made selling sex in the Norwegian capital.

Police in August raided an Oslo flat where a woman known as Patricia (34) lived with two other sex workers. They seized 74,000 kroner, much of it in foreign currency. 

They refused to return the money to Patricia, who is from Nigeria, claiming that the money was earned in Norway and should be subject to income tax and VAT (sales tax), according to newspaper VG.

But the court queried whether the state should tax income from prostitution, given that related activity such as pimping and human trafficking are crimes.

I note also that

It also said that it was not proven that Patricia was a tax resident in Norway at the time.

which might make the rest of the case moot.


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