A recent police raid targeted the Pascha brothel in Germany, because of alleged tax evasion. Last Saturday police and tax investigators arrived at the scene with multiple vehicles, initiating a comprehensive search for evidence.
The operation started at the beginning of business hours to ensure the presence of all sex workers. Authorities focused their efforts on compliance with tax regulations, particularly emphasizing the obligation for sex workers to meet their tax responsibilities.
The Düsseldorf Procedure
Every sex worker is required to pay income, sales, and business taxes. The brothel’s owner collects a daily fee from each worker, approximately 15 euros, and remits these sums to the tax authorities, resulting in a monthly total of around 30,000 euros. This flat rate system is the so-called Düsseldorf Procedure.
As it turned out, the brothel owner did not forwarded the collected taxes.
According to him, first he forgot to collect the increasement when the rate was changed to 20 euros. Later, when the flat rate became 35 euros, he refused to comply it, because of its possible negative effect of the customers and his business.
The investigation into Pascha brothel’s compliance with tax regulations remains ongoing.
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