Penthouse Executive Club, a strip club in New York, got hit with a tax bill of over 3 million bucks. The problem stems from their dealing in an alternative universe currency called “executive dollars.” Basically, customers buy the dollars to pay for “dances” from the women working at the club. The women exchange earned executive dollars before they go home, but not before the club skims 13% off the top. An audit shows the company didn’t pay taxes on those exchanges.
The club argued it shouldn’t have to pay taxes because its dancers are “love doctors” that provide a health service; the idea being that the strippers are more like sex therapists than, well, strippers. The judge answered that idea with a “nope.”
The big question remaining: Will the tax bill be paid in singles?
