September 6th, 2006, 09:21
Wait for the Thai tax authorities to catch on to this -
Audit of red-light businesses in black
TAX investigators are investigating Sydney's brothels and erotic dance clubs as part of an audit into the adults-only economy. Two investigators, believed to include a GST compliance officer, Danielle O'Brien, entered A Touch of Class in Surry Hills yesterday afternoon. After an hour of searching questions, they were seen leaving with a pile of business accounts and records.
The bordello, which boasts a shining red light but is otherwise spread discreetly across three terrace houses at 377 Riley Street, touts itself as a "Sydney landmark" that has been treating businessmen to its "sumptuous earthly delights" since 1972. The website notes it is "a mere five-minute cab ride from any part of the city".
Shortly afterwards, the Herald was led down a corridor to two brown leather couches, mints, matches, ashtrays - and a giant digital television playing a pornographic film. On the wall a list invites customers to choose from the brothel's delights, with popular specials including "full French", "school uniform", "lingerie", "toys", "lesbian double" and "golden shower".
The woman who answered the door was polite. Before volunteering to turn the television off, she commented with a smile: "It is what we do." The business's managing director, Peter Lazaris, would not comment on the reason for the Tax Office visit, but was evidently shaken. "It's a bit of a shock to the system," he said. "Look, I'm feeling confident that everything will be all right because we've been compliant for a number of years and I don't think we'll be fearing anything that they ask."
Neighbours say Mr Lazaris, 38, sometimes arrives in the latest model Corvette - worth a quarter of a million dollars - but rarely drives the same car twice in the same week. A close observer said A Touch of Class reaped about $9.6 million in revenue a year. Two months ago, the deputy tax commissioner, Mark Konza, told a Senate committee hearing that his auditors had sampled 50 brothels and erotic dance clubs and uncovered rampant tax evasion.
Mr Konza said some auditors did not have the stomach for adults-only business, but others enjoyed "the more edgy work". He vowed to "stay involved" with industry players until "they are able to convince us that it has been brought under sustained control".
Resplendent in a pink shirt, purple tie and pinstriped suit, Mr Lazaris said the tax officers were looking at the books of all brothels. "They're starting with the big operators and then they'll oversee the small operators after that. They may feel the bigger parlours are turning over a lot more money than they declare. "I don't know what they're chasing at the moment and it's best it was left in their hands to solve it." Asked if the tax officers would return, he said: "Don't know. They probably might come back."
Audit of red-light businesses in black
TAX investigators are investigating Sydney's brothels and erotic dance clubs as part of an audit into the adults-only economy. Two investigators, believed to include a GST compliance officer, Danielle O'Brien, entered A Touch of Class in Surry Hills yesterday afternoon. After an hour of searching questions, they were seen leaving with a pile of business accounts and records.
The bordello, which boasts a shining red light but is otherwise spread discreetly across three terrace houses at 377 Riley Street, touts itself as a "Sydney landmark" that has been treating businessmen to its "sumptuous earthly delights" since 1972. The website notes it is "a mere five-minute cab ride from any part of the city".
Shortly afterwards, the Herald was led down a corridor to two brown leather couches, mints, matches, ashtrays - and a giant digital television playing a pornographic film. On the wall a list invites customers to choose from the brothel's delights, with popular specials including "full French", "school uniform", "lingerie", "toys", "lesbian double" and "golden shower".
The woman who answered the door was polite. Before volunteering to turn the television off, she commented with a smile: "It is what we do." The business's managing director, Peter Lazaris, would not comment on the reason for the Tax Office visit, but was evidently shaken. "It's a bit of a shock to the system," he said. "Look, I'm feeling confident that everything will be all right because we've been compliant for a number of years and I don't think we'll be fearing anything that they ask."
Neighbours say Mr Lazaris, 38, sometimes arrives in the latest model Corvette - worth a quarter of a million dollars - but rarely drives the same car twice in the same week. A close observer said A Touch of Class reaped about $9.6 million in revenue a year. Two months ago, the deputy tax commissioner, Mark Konza, told a Senate committee hearing that his auditors had sampled 50 brothels and erotic dance clubs and uncovered rampant tax evasion.
Mr Konza said some auditors did not have the stomach for adults-only business, but others enjoyed "the more edgy work". He vowed to "stay involved" with industry players until "they are able to convince us that it has been brought under sustained control".
Resplendent in a pink shirt, purple tie and pinstriped suit, Mr Lazaris said the tax officers were looking at the books of all brothels. "They're starting with the big operators and then they'll oversee the small operators after that. They may feel the bigger parlours are turning over a lot more money than they declare. "I don't know what they're chasing at the moment and it's best it was left in their hands to solve it." Asked if the tax officers would return, he said: "Don't know. They probably might come back."