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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:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

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

ISSN 1038 - 8982

Related Rulings/Determinations:

TD 93/D181W
IT 2129

Subject References:
escorts
employees
agency
PAYE

Legislative References:
ITAA 221A


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