Revenue bid to 'educate' online influencers about tax obligations

Online influencers are a new industry but the same rules apply to them as to anyone else, Revenue said.

Revenue has sent letters to 142 online influencers to "educate" them about their tax obligations.

Representatives of the tax authority were before the Dáil's Public Accounts Committee, where Revenue chairman Niall Cody said that online influencers were a new industry but are treated as any self-employed person would be.

He said the authority had carried out a Level 1 Compliance Intervention with a group of influencers. 

Revenue chairman Niall Cody said online influencers are treated as any self-employed person would be. Picture: Gareth Chaney/Collins

Fianna Fáil TD Paul McAuliffe asked how this group had been chosen and said that while many would "consider themselves influencers", some earned a very small amount.

“It’s a new industry but the exact rules apply to them as they apply to anybody else. If you’re getting an income in money or in-kind, you're liable to the self-assessment system," Mr Cody said.

Much of the data on payments to influencers had come from the "parent" or company sponsoring the person, according to Mr Cody.

He said that Revenue has a three-tiered compliance intervention system and that Level 1 was a reminder to people to ensure compliance. He said that any idea of audits or penalties do not begin until Level 2.

Some of the people are very young and probably have no real understanding so what we're trying to do is educate people, get them into the system. Our main interest is getting people compliant.

"Ultimately, we're the tax authority and tax is payable on income."

Mr Cody said there are "complex rules" on how benefits such as hotel stays are worked out.

He said there is "a continuum" on what is taxable and what is not and that there are "issues around brand sponsorship" and other forms of advertising.

Mr Cody said that Revenue "pays attention to any business line".