Draft Taxation Determination

TD 93/D181

Income tax: is a person working as an escort through an escort agency an employee for Pay-As-You-Earn (PAYE) tax purposes?

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FOI status:

Preamble

1. Generally yes. Whether or not a person is an employee for PAYE purposes, under section 221A of the Income Tax Assessment Act 1936, is a question of fact that must be determined according to the circumstances of the particular case. However, the assumption by the escort agency of responsibility for a number of the following activities would point strongly to the escort being an employee for PAYE purposes:

(a)

advertising;

(b)

receiving incoming client calls;

(c)

arranging contact between client and escort;

(d)

setting prices for services;

(e)

credit card facilities.

Note: This is not intended to limit the factors determining whether someone is an employee. A more complete description of "employee" is contained in Taxation Ruling IT 2129.

Commissioner of Taxation
22/7/93

References

BO TOW 17

Related Rulings/Determinations:

TD 93/D181W
IT 2129

Subject References:
escorts
employees
agency
PAYE

Legislative References:
ITAA 221A