Revenue has confirmed that since 2023 it has sent around 450 compliance notices to online influencers to remind them of their tax obligations.
The communications highlight the potential tax treatment in relation to income, gifts, the free use of goods or services, and virtual currencies or tokens they may receive through their business activities.
Revenue said it is aware that people using social media and other online platforms to conduct business has become “more prevalent in recent years” and that this is “an emerging area of focus within our ongoing programme to support voluntary compliance, and address areas of non-compliance”.
The letters sent to online influencers are classed as ‘Level 1 compliance interventions’ and are usually a reminder to file a tax return and pay any associated liability.
Under current rules, tax payers can avail of a ‘Small Gift Exemption’, meaning they can receive a gift valued at up to €3,000 from any person in a calendar year that is exempt from Capital Acquisitions Tax (CAT).
Tax payers may take a gift from several people under this rule, but once the value of any one gift exceeds €3,000 then CAT of 33% becomes due.
According to Revenue, anyone who underdeclares their tax liability may face interest, penalties, and be liable for inclusion on the list of tax defaulters, as well as potential prosecution.
