A raid on Vicenza, has laid bare the startling levels of tax evasion within the rather unusual market sector of"luxury escorts", a signal of how the new government of Mario Monti will leave no stone unturned in attempts to claw back billions in undeclared revenue.
Tax officials traced about 40 escorts who own luxury villas and apartments, top-end cars, jewels and fat bank accounts but paid no taxes. Just one escort is expected to pay almost 300 000 Euro in taxes - which she will do in monthly payments following a payment scheme already agreed with Italian tax officials.
The investigation, titled "Hot Nights" by the law enforcement officials, started a couple of years ago, when a team of officers from Italy's inland revenue agency closed a lap dance club for women exploitation and prostitution. In that occasion they also realised that the sex workers earned a lot but did not pay any taxes.
While the debate on sex workes and prostitution in Italy has always focused on the ethical issues involved, in times of economic hardship, this anti-tax evasion operation may succed in shifting the debate on more practical grounds. Indeed, the fact that the Italian government is willing to collect tax on the activity is an implicit admission that is considered a legal activity.
