Court ruling allows brothel owners to pay taxes in cash

Antwerp (Brussels Morning) – Two brothel owners in Antwerp’s Schipperskwartier won the right to pay taxes in cash after a court ruling. The decision challenges banking hurdles faced by the sex industry despite recent decriminalization.

Two brothel owners who together rent out 53 display cases in Antwerp’s Schipperskwartier were now allowed to pay their taxes in cash. The reason why the two went to court: no one pays by card. Moreover, the sector still finds it difficult to open an account with the bank.

Officially, the rental of the showcases is done through a real estate company. But the two have about half of Antwerp’s prostitution area in their portfolio. The two men in their fifties say that they strictly comply with the law, that they are constantly monitored and that they pay taxes like everyone else. 

What challenges do brothel owners face with banking services?

Banks almost consistently refuse anyone in the sex sector, which is remarkable now that sex work was recently decriminalized. Whether it concerns prostitutes or landlords of brothels. One of the reasons: they come to the counter too often with cash. And banks are obliged to check where large deposits come from and whether it is all ‘white’ money.

The two brothel landlords from Antwerp’s Schipperskwartier took the Flemish tax authorities to court to pay their taxes in cash. Because the girls also pay the rent in cash. According to both the website of FPS Finance and that of the Flemish Tax Authorities, this is not possible. This also applies to traffic fines, for example. While merchants are required to accept both cash and payment cards.

“That is quite remarkable. The government refuses cash, even though it is legal tender, created and issued by the government itself. My clients have the greatest difficulty putting their income into an account. But they do have to pay their taxes via their bank account,” says Antwerp lawyer Brecht Debruyn.

How did brothel owners win their case in court?

The judge in Brussels agreed with them. The tax authorities are now obliged to accept cash for payment of taxes. How this will be done in practice remains to be seen. Perhaps at a special counter at the tax authorities. Master Debruyn refers here to the city of Antwerp. “There, the tax on rooms and/or places that serve as rendezvous houses, the so-called ‘rendezvous tax’, is accepted in cash.”

What limitations are there on paying taxes in cash?

However, this does not solve all problems. Because the judge says in the judgment that they will only be able to pay up to a maximum of 3,000 euros in cash. “That limit is a consequence of the anti-money laundering law,” says their lawyer. “But the taxes the duo has to pay quickly run into hundreds of thousands of euros. We asked the court to what extent the government itself is bound by the limit, but no answer has been given so far.” The Flemish tax authorities are still studying the verdict, but are considering filing an appeal. In principle, they have thirty days to do so.