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Sex sells, enough to cause Oz madam a $2M tax bill

May 1, 2016

Brothels are legal in New South Wales, Australia, so officials there had no problem when Jamelie Lahood ran the Stiletto brothel for more than a decade until 2014.

Room at Stiletto bordello Sydney Australia_Instagram stilettosydneyA room at Stiletto, a high-end brothel in Sydney, Australia. Photo from the bordello's Instagram account.

However, Australian tax officials do take issue with the nearly $2 million ($1.5 million in U.S. currency) they say Lahood owes from her earnings as boss of the self-described "world's finest short stay boutique hotel and Sydney brothel."

The money Lahood made operating Stiletto between 2008 and 2014 placed her among the top 0.1 percent of Australians, according to the Sydney Morning Herald.

And the brothel-related tax bill apparently isn't her only issue.

Millions more taxes allegedly owed: Oz media reports that the Australian Tax Office wants a total of $16 million in income tax, interest and penalties from Lahood.

There there's the more than $190,000 in unpaid land tax (the Oz cousin to U.S. property taxes) that Lahood is said to owe New South Wales government.

The Office of State Revenue reportedly has taken out caveats (known as liens here in America) to prevent Lahood from selling four of her properties, including a $3 million waterfront estate on Sydney's Yowie Bay.

Lahood has not issued any statement, either personally or through her lawyers.

The lesson, though, is clear to all taxpayers everywhere. Regardless of your business, legal or otherwise, pay your taxes. Failure to do so will probably cost you a lot more later.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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