OnlyFans creators seek tax deductions for sex toys and kinky outfits
Creators of sexually suggestive or explicit content on the site OnlyFans tried to claim racy clothing and other items as tax-deductible expenses in returns submitted to the Revenue Commissioners.
The platform, widely used by sex workers and for pornography, has created problems for Revenue over what performers can and cannot write off as the costs of doing business.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
10 hours ago
- Irish Times
Inheritance, relatives and blended families: what does it mean for tax-free thresholds?
Could you clarify a passing comment that you made in your article last week. You used the phrase 'by blood'. Are you drawing a distinction with uncle or aunt by marriage versus an uncle or aunt 'by blood'? In other words, are you saying that a child can inherit under Class B from their parent's sibling, but not the spouse of that sibling? Are you sure that is correct as I do not see any such distinction in Revenue guidance ? It also raises the question of who is 'the parent' in the case of a divorce and remarriage. Does the birth parent for Class A purposes cease to be a parent on remarriage or can the step-parent become one? Mr DL READ MORE I always wonder when I write 'by blood' whether it is clearly understood. As with many recurring items, I have set out clearly what that means at one point or another but often revert to the shorthand. And yes, it can be counterintuitive if, like me, you grew up in a family where aunts were regarded as aunts regardless of whether they were my parents' siblings or had married into the family – and similarly for uncles. But Revenue does make a distinction when it comes to inheritance. The three inheritance tax thresholds are very specifically delineated according to blood relationship between the person making the gift or leaving the inheritance in their will and the person receiving it. Category A, which offers the highest tax-free threshold – currently €400,000 – is generally referred to as covering gifts and inheritances from a parent to a child, but it is slightly wider than that. [ Inheritance tax: How to avoid leaving your loved ones with a hefty bill Opens in new window ] For instance, if it is the child that dies – as an adult or otherwise – and the parent who inherits from them, the parent will also benefit from the Category A threshold as long as they are inheriting outright – rather than, say, getting a life interest in a property. The threshold will also apply to a child – anyone under the age of 18 – where they are inheriting from their grandparent when their parent is dead. We'll come back to that Category A in a minute in relation to the second part of your query. Category B covers close blood relatives other than parents – or other scenarios covered by Category A. It is sometimes described as lineal relations – i.e. those in a direct line of descent or ancestry. Most commonly, that is seen as covering gifts and inheritance from a brother or sister, a grandparent and an uncle or aunt. And yes, it is only aunts or uncles related by blood – i.e. siblings of one or other parent. You're certainly right to query it. I used to think it covered everyone with that title but I did check with the Revenue commissioners and they did confirm that there had to be a blood relationship with the aunt or uncle for them to be covered under Category B. Category B will also cover life interest inheritance from a child to a parent or any inheritance from a child to an aunt, uncle or grandparent in the unfortunate circumstance of the child predeceasing the older relative. [ Will inheritance tax be cut again in the budget? Opens in new window ] Many people worry about what other people will pay in tax on an unexpected windfall (inheritance) after they are gone. Photograph: Getty Images There is a growing clamour – particularly from people who do not have children – for reform of this Category B. As it stands, the tax-free threshold under Category B is €40,000, just 10 per cent of the Category A threshold. An awful lot of people worry about what other people will pay in tax on an unexpected windfall (inheritance) after they are gone. Personally, I always find that odd but that's not to say it is not a thing. There is pressure either to raise this significantly or to find some other device to allow people without children nominate one or two beneficiaries who can avail of a higher threshold. It is something that has been examined in the Tax Strategy Papers published recently by the Department of Finance . These papers examine issues that might be addressed in the budget later this year or a budget further down the line. As is their wont, this review merely sets out options and, to the degree possible, their likely cost or benefit to the exchequer. Whether one approach should be favoured over another or whether any policy change should be pursued remains a political matter for decision by the Government . Finally, we have Category C which covers all other people benefiting from a gift or inheritance – sometimes called 'strangers in blood' where the current tax-free threshold is €20,000. [ I am due to inherit €30,000, is it worth my while to gift my husband half to avoid tax? Opens in new window ] The three inheritance tax thresholds are delineated according to blood relationship between the person leaving the inheritance in their will and the person receiving it. Photograph: Getty Images And you can see here why Revenue specifies that aunts and uncles in Category B must be blood relations, not relations by marriage. Apart from friends, neighbours, carers, gardeners etc, Category C also includes cousins who are, by definition, blood relatives of some sort and also in-laws, whom in many cases can be closer to the disponer (the person making the gift or inheritance) than even a niece or nephew by blood. But so it is. As regular readers will know, the other key thing to note is that these are lifetime limits on all gifts and inheritances dating back under each category to December 5th, 1991. So, under Category B, you need to tot up all large gifts and inheritances you have received from any grandparent, sibling, aunt or uncle to see if your latest windfall is tax-free or otherwise. And when we say gifts, we mean gifts valued at more than €3,000, as anything below that in any year is covered by the small gift exemption and is also tax free. Finally, once to hit 80 per cent of the relevant threshold – benefits of €320,000, €32,000 and €16,000 for each category respectively, you need to file an inheritance tax return to Revenue even though no tax is owing until you exceed the full threshold. Getting back to your second query – the position with blended families after divorce, remarriage and separation – you're quite correct to say that this is increasingly relevant in our modern society. We need to return to the question of the Category A threshold. When it states that a child can receive up to €400,000 tax-free from parents, the definition of child also refers to stepchildren and to adopted children. In fact, it even applies to foster children as long as those foster children spent at least five years with the family before the age of 18 at the family's expense. So does that mean that a child who is adopted or whose parents have divorced and remarried can receive category A benefits from more than two parents? Yes, it does. A stepchild qualifies for Category A on inheritance or gift from their birth parents and from any step-parent. The same is true for a child formally adopted. But birth parents are not removed from the Category A equation. A child can still avail of Category A in relation to a birth parent, even after divorce and remarriage, or where the child has been adopted elsewhere, as can a child who has been fostered under the criteria mentioned above. The one difference between the three categories of child is that if an adopted child's birth parent dies without making a will, they are not entitled to anything under intestacy where a stepchild and a fostered child would be. Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2, or by email to , with a contact phone number. This column is a reader service and is not intended to replace professional advice
Irish Independent
15 hours ago
- Irish Independent
OnlyFans creators seek tax deductions for sex toys and kinky outfits
Revenue workers' letters reveal confusion over whether to grant relief for 'props', nurse costumes and 'stripper underwear type things' Creators of sexually suggestive or explicit content on the site OnlyFans tried to claim racy clothing and other items as tax-deductible expenses in returns submitted to the Revenue Commissioners. The platform, widely used by sex workers and for pornography, has created problems for Revenue over what performers can and cannot write off as the costs of doing business.
Irish Times
3 days ago
- Irish Times
East Coast Bakehouse files overdue accounts showing soaring revenues and €7m losses
Irish biscuit manufacturer East Coast Bakehouse has filed two years of overdue accounts that show a sharp rise in revenue and combined losses of €7.4 million over the period as it continued to invest heavily in its growth. The accounts state that the company's turnover is now at the level 'required to trade on a break-even basis during the year ending February 28th, 2026″. And the business recently raised €5 million in additional equity from investors to help fund its growth, particularly in export markets. The biscuit maker made the headlines recently for failing to file its accounts on time with the Companies Registration Office, as required by company law. In June co-founder Michael Carey stepped down from his roles as chairman of Enterprise Ireland and the Housing Agency to avoid any embarrassment for the Ministers involved, James Browne in housing and Peter Burke in the Department of Enterprise (whose remit covers the CRO). READ MORE These accounts have now been filed, following the recent appointment of EY as auditor. The filings cover 12-month periods to the end of February 2023 and February 2024. The accounts for the year to the end of February 2024 show the revenue rose by 80 per cent to €11.2 million while its losses more than halved to €2.2 million from €5.7 million in the previous 12 months. The losses were fully funded by shareholders. Commenting on its late filing, Mr Carey said: 'It was my own fault that we didn't stay on top of the need to get them prepared and completed for the filing deadline. We were focused more on issues of fundraising and not enough time was given to it. 'We had issues with our accounting service provider and we made the decision to appoint EY, with that process taking some time. The resolution to fix this took considerably longer than it should have. We won't be late in the future. We now have procedures in place that ensure this won't be repeated. And it is important that companies file on time.' In terms of trading, he said the strong momentum in revenue over those two years has continued into the current financial period. With a manufacturing facility in Drogheda employing 100 people, East Coast Bakehouse began trading nine years ago with an eye on exporting the bulk of its product to the UK. Brexit upset that plan, followed by Covid-19 lockdown restrictions and inflation caused by Ukraine war. 'It's been a rollercoaster ride,' Mr Carey said. 'More ups and downs than anybody would want in a business in start-up phase. But the prospects are very strong. 'We have revenue up now beyond the volume necessary to achieve profitability. But it has taken longer and absorbed more funds than we would have intended. 'Our first commercial sale was in June 2016, the same month as the Brexit vote. That uncertainty really derailed us for a couple of years and Covid obviously slowed down progress ... business development ground to a halt. So it has taken considerably longer to get to where we had hoped to be.' The company produces more than 1 million biscuits each day, with 70 per cent of its output exported, mostly to the UK and Germany. There are three elements to its business: its own Bakehouse brand, private label products for retailers, and contract manufacturing for other biscuit producers. Mr Carey said the company recently signed private label deals with British supermarket groups Asda and Morrisons and it has also shipped product to Singapore, Trinidad and Nigeria.
