Not making a profit off of your business is not proof of not selling a product that you shouldn't be selling. All it is proof of is being a poor business person.
That point keeps bothering me... do you think that really all Paysite owners are legally registered as business-owners, at least in those places where it is required? Do they pay taxes? Do they do all the things a RL business owner has to do?
I would bet you money that Rose does not pay US sales taxes, and that all the 12 year-olds that gleefully start a pay site with no business licenses or tax ID numbers are NOT paying sales or income taxes in whatever country they are doing business in. They don't see it as business, but just "free money!" As a 12 year-old would.
There is no similar excuse for obvious business-oriented sites such as TSR (employees) and Rose. They
know they are evading taxes. And the Russian Sims 2 pay sites are more than likely operating illegally in Russia, too, as part of the notorious piracy/bootleg/underground economy. They sure as hell ain't paying income taxes in Russia!
Just a thought has anyone turned over a list of paysites to the IRS? Doesn't matter if they are located in the USA, they'll contact whom they need to in these paysites own country. The IRS is harsh when you owe them a dime, it will quickly become 1,000 dollars. I remember my sister and brother in law didn't file one year because they knew they'd owe money. He owns his own construction company. Anyway they went from owing the IRS 2,000 dollars to over 2 million in less than a year with everything they tacked on fines/penalties/etc.
Oh and PS he also thought he shouldn't have to file because he was not yet a legal citizen, but one of the workers turned him in. That was part of the reason he gave us for why he never filed. Said he'd owe money if he did and besides he's not a legal citizen. Turns out he also wasn't paying taxes in his own country either and since he was doing business with American citizens....
PMBD
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