Revenue to use social media companies to track payments to Irish influencers
Revenue is chasing down social media companies to track their payouts to Irish influencers, writes Muiris Ó Cearbhaill.
New legislation will compel platform providers to hand over their financial documents to tax officials, which will indicate who is on their payroll.
The changes have led Revenue chairman Niall Cody to warn independent online content creators: “If you’re doing it, we will know about it.”
Mr Cody told the Dáil Public Accounts Committee (PAC) yesterday that, under the new legislation, social media companies must comply with requests for financial information made by Revenue Commissioners.
The chairman added that, in a limited number of cases in the past, Revenue was required to seek court orders to receive these documents first.
Changes to the legislation will circumvent this process and help to ensure social media giants operating in Ireland are paying their fair share of tax.
In September, Revenue issued compliance guidelines to social media content creators.
It was noted by PAC members yesterday, however, that many content creators do not earn an income through traditional means and often receive gift certificates or exclusive invitations as a form of payment.
Mr Cody said that Revenue Commissioners can only operate within active legislation but highlighted some gaps that currently exist.
He referred to news reports that creators on the adult-rated website OnlyFans cannot currently claim tax exemptions for items of clothing they purchase for their content.
The Revenue chairman added, however, that the independent tax appeals process is open to everyone.
Mr Cody stated that the entire social media business model “took off during Covid” and saw “very, very young people” earn six-figure sums in a short number of years.
Revenue audits found that multiple online influencers owed approximately €3.3m in unpaid tax between 2020 and 2024.
Changes to the legislation will circumvent this process and help to ensure social media giants operating in Ireland are paying their fair share of tax.
Mr Cody said that while a significant amount of this money has been recouped, there are problems receiving payments on time.
“Generally, [liabilities] are being paid. We would prefer that they were paid on time, because the interest bill… is far more excessive than any penalties,” he said.
“It’s really within people’s interest to pay their tax before it is due.”
