‘Imagine trying to sleep at night with $1.3 million in debt’: Inside the tax returns of Australia’s sex industry

An Aussie accountant has spilled on her biggest shock when doing tax returns for people in the sex industry.

Tax time is here and an Aussie accountant has revealed what it is really like doing tax returns for people in the sex industry.

Accountant Linda Mirams discovered her knack for numbers while working as a stripper in her 20s and trying to understand how to complete a tax return as a sole trader.

It was the early 2000s, she was stripping on the Gold Coast, and she said there was still so much stigma attached to the profession.

Ms Mirams, now 42, told news.com.au that after an uncomfortable experience with a “weird and creepy” accountant who didn’t take her seriously, she decided to take matters into her own hands.

“I started doing my taxes and started helping out other women at the club,” she said.

“I was doing it for myself and making spreadsheets and tracking expenses.”

Linda Mirams started stripping in her 20s and eventually discovered her love of numbers. Picture: Supplied

She ended up going to uni and now works full-time as an accountant. Picture: Supplied

Ms Mirams became so invested in her accounting side hustle that she went to university and got a degree in accounting.

The 42-year-old now works full-time as an accountant and her business, Empire Industry Finance, provides tax return services to the adult and sex industry.

The rise in popularity of OnlyFans, a subscription service that allows people to share X-rated content, has meant Ms Miram’s business is booming.

“It is my passion project and my baby, and we’ve even had 8 or 9 girls that have worked in the industry work here with us doing bookkeeping and such,” she said.

The accountant explained that she’s not “cashing in on the industry” but rather offering support to the female-dominated workforce.

Ms Mirams said that, for the most part, she helps people in the sex industry make their income usable by helping them be transparent with the tax office. Picture: Supplied

Ms Mirams services some of the biggest names in the industry, such as Lucy Banks, who started as a creator on OnlyFans and now runs the sex worker PR agency Million Billions.

“I’ve used Empire Accounting for years. The advantage of using an industry accountant over a regular accountant is that they help you with future planning,” she told news.com.au.

“They know how to structure your finances and tax so you can legitimately hit your goals, including purchasing property.”

Lucy Banks started out on OnlyFans and now runs a successful PR company. Picture: Instagram/LucyBanks

Ms Banks said she’d never been interested in numbers. Picture: Instagram/LucyBanks

Ms Banks said that she finds “numbers boring” and she’s never wanted to deal with them, so outsourcing is essential.

“I just want to do the parts of my business that I enjoy and I’m good at,” she explained.

“Once I was in a position to do so, the bookkeeping and finances were the first thing I outsourced in my business.”

Ms Mirams has seen it all, from clients who come in and are quite literally keeping all their earnings under their mattress, to clients who have “squandered everything” and left nothing aside for tax time.

Ms Mirams said that, for the most part, she helps people in the sex industry make their income usable by helping them be transparent with the tax office.

“People were really secretive and were getting knocked back from banks and thought they had to hide their money,” she said.

“We help them buy houses and cars.”

She really loves helping people take control of their money. Picture: Supplied

She said the idea of “dealing with it later” is flawed. Picture: Istock

The 42-year-old said that you could possibly get away with hiding cash from the tax office in the early days, however with OnlyFans the money gets deposited directly into the creator’s bank accounts.

“They can’t get away with not declaring income,” she added.

Ms Mirams said the biggest mistake people make is just not confronting the fact they’ll need to pay tax or thinking they’ll be able to avoid it.

“The biggest mistake is burying your head in the sand and thinking I’ll deal with it later,” she said.

It is a bad mistake to make because creators on OnlyFans can start earning big money – sometimes immediately. She recently dealt with a client who was making $60,000 a month after only being on the platform for three months.

The accountant said she’s seen first-hand what can happen if you keep ignoring the tax office, even if you’re a high-earner.

“It is hard to catch up and you’re always trying to chase your tail if you’re getting on top of debt,” she argued.

“The biggest debt I’ve ever had to tell a client was $1.3 million.”

The biggest mistake people can make is putting off getting their taxes sorted. Picture: Supplied

Ms Mirams said breaking the news to the client that they owed such a large amount was pretty “terrifying” because she knew the individual didn’t have the money to pay the debt.

The Australian Taxation Office also charges interest on debts, and that particular debt ended up costing the client thousands of dollars a month in interest.

“Imagine trying to sleep at night with $1.3 million in tax debt,” she said.

Ms Mirams said she was relieved to say that getting into debt isn’t the norm, and a lot of her clients are financially savvy.

“We have clients that are earning between $100,000 to $800,000 a month and they are earning big money,” she said.

“It is refreshing at the end of the quarter, when you say, you owe $250,000 and within five minutes they’ve paid it.”

Ms Mirams said a good tax return comes down to understanding that you need to be able to justify your claims and keep diaries, as well as evidence.

You can’t just say you went on a work trip; you need to be able to justify that it was a trip you worked on and have the receipts to prove it.

“It is about showing this is what you do, this is what you need, and this is how you use it for work,” she explained.

Ms Mirams said that at the end of the day, all she wants to do is help clients use their money freely and without worry.

“The main message we drive home to clients is – you need to think about the end goal.”

The accountant argued that if you want to have an awesome life and “you don’t want to pay taxes” that is never going to work.

“In order to get ahead, to get investments and properties and set yourself up – taxes are part of it,” she argued.

Originally published as ‘Imagine trying to sleep at night with $1.3 million in debt’: Inside the tax returns of Australia’s sex industry