I will preface this with saying I am 100% independent.
My pimp is someone we all know, and someone that always has their hands out stretched to take their money 1st before you even see a penny. My pimp is the Tax Man, CRA, the Government. In Canada it is legal for what I do. What is illegal is purchasing sexual services. Thus we charge for our time and what we do within that time is between you and I as sober consent adults. Yes! I pay my taxes. The more I have spent time in the industry the more I know of many wonderful people that are paying their taxes. How do you think we get approved for mortgages, business loans, car loans, ect.? Most of this requires at least 2 years of history and enough information for lenders. That's my goals, is to buy a house and pay off the mortgage within 10 years.
Now you are asking what taxes do I pay? I pay HST. HST is based on my province of residence so it's 15%. 15% comes right off the top of my rates. Since the industry isn't set up with the mind set of us paying our taxes, HST is included in my rate. For easy numbers, my hour rate is 360, $60 is HST.
I also pay income tax. The nice part of income tax and business, it's based on my income after expenses. My catch 22 is that in order to get approved for a mortgage, I have to have so much gross income to be able to be approved. If you are a self employed individual you know how tough it is to get approved for a mortgage. Thus, sadly, I have had to pay a little extra in taxes as I haven't been able to take all my write offs. I do highly recommend finding a very good accountant to help you file your taxes. As there is a little bit more work to putting your taxes together and making sure you are getting all, or as much as you want, for your write offs. I have no problem paying taxes, I just wish our pimp would take less of a cut or give us what they promised they would.