Revenue sends letters to social influencers on their tax liabilities

Revenue has confirmed that it has written to 142 influencers about their tax obligations, it has been confirmed. 

Revenue has said it is “educating” young influencers on tax by sending out correspondence on their obligations.

The letter were sent by Revenue to influencers last year under a “Level 1 Compliance Intervention”. This is an early warning that income, gifts, free goods and services, virtual currency or token payments needed to be properly accounted for.

"It's a new industry but the tax rules apply to them just like they apply to anybody else," Revenue Chairman Niall Cody told the Public Accounts Committee (PAC) this week.

"So it comes down to the basic income tax rules," he added.

"So, if they're getting an income in money or in kind, they're liable to the self-assessment system," Mr Cody told Fianna Fáil TD Paul McAuliffe.

Deputy McAuliffe had asked Mr Cody at the PAC meeting this week how physical gifts sent to influencers and free hotel breaks would be treated by Revenue Commissioners.

Mr Cody said there were “complex rules” around sponsorships and influencers being given a complimentary hotel room and meal to post a review of it online.

New guidelines for influencers were published last year by the Competition and Consumer Protection Commission (CCPC) and the Advertising Standards Authority for Ireland (ASAI) on labeling sponsored content and advertising. 

Under the Consumer Protection Act 2007, influencers must make it clear if their posts are of commercial nature, or they could be breaching the law.

This is because the 2007 Act bans certain commercial practices that are deemed to be unfair or misleading to consumers. Traders engaging in such practices may face enforcement action.

The CCPC has a range of enforcement tools to ensure that consumer protection law is adhered to, including compliance notices, fixed payment notices, undertakings, prohibition orders and prosecution.