Revenue issues 450 tax warning letters to social media influencers
The Revenue Commissioners has confirmed it has issued more than 450 letters to online social media influencers in the past two years to remind them of their tax obligations.
The Revenue Commissioners has confirmed it has issued more than 450 letters to online social media influencers in the past two years to remind them of their tax obligations.
Revenue has sent reminder letters in these cases under its Code of Practice for Revenue Compliance Interventions. Some of these letters cover income, gifts, and services which social influencers may have received through their business activities and which could be liable for tax.
“In relation specifically to those using social media and other online platforms to conduct business activities, we are aware that this practice has become more prevalent in recent years,” Revenue said in a statement to the Irish Examiner.
“This is, therefore, an emerging area of focus within our ongoing programme to support voluntary compliance, and address areas of non-compliance. We are also aware that some individuals operating through online platforms may be unaware of their tax obligations, or the tax treatment applicable to income, gifts, the free use of goods or services, and virtual currencies or tokens they receive through their business activities. Revenue has therefore issued approximately 450 Level 1 compliance intervention notices, since 2023, to support voluntary compliance within this space.”
The Irish Times reported on Wednesday that 307 letters were issued in 2023, with a further 150 issued in October 2024. The information was released under the Freedom of Information Act.
“These reminders are classified as Level 1 compliance interventions under Revenue’s Code of Practice for Revenue Compliance Interventions (in conjunction with Revenue’s Compliance Intervention Framework), and are intended to support and encourage taxpayers to meet their tax obligations on time,” Revenue said in its statement to the Irish Examiner.
The tax authority said the obligations of those conducting activities via online platforms "are no different from the tax obligations of those operating in any other sector of the economy". This includes where "an individual receives a gift from somebody or has the free use of somebody’s property, he or she may be liable to submit a Capital Acquisitions Tax (CAT) return and pay any corresponding liability".
Revenue said that it would continue to use "the range of information available to us, including taxpayer returns, third party information, intelligence and other sources" to review compliance within the sector and identify non-compliance indicators.
Revenue also noted that it facilitates high voluntary compliance levels by giving taxpayers the information and guidance they require to understand their tax obligations, and by providing services "to make it as easy as possible to comply with same. However, situations may still arise when normally compliant taxpayers fail to meet their obligations on time, such as the late filing of a return. In such situations, Revenue may issue a reminder to file the return and pay any associated liability."
