Sexual content creators on OnlyFans site causing a headache for Revenue officials over expenses
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
3 hours ago
- Irish Times
The Irish Times view on influencers and tax: adapting old rules to a new era
The Irish tax system was designed for a simpler world. Much of it was inherited from the UK, though in important respects Irish rules differ, too. But like tax systems globally it is having to adapt to deal with ways of doing business and earning income which were never envisaged when the rules were drawn up. The decision by the Revenue Commissioners to issue guidance on VAT to social media influencers - following advice last month to the same group on tax on their income - is the latest evidence of this. The tax rules were drawn up in an era when income was earned as cash – from an employer or in pursuit of a trade. Its architects would not have considered somebody being gifted a few nights in a posh resort, or the use of a car for a year, in return for advertising the services of the donor. Properly accounting for this is important in terms of a key goal of the system – fairness. Those who see money deducted each month under PAYE need to see the system applied fairly elsewhere, as do small retailers faithfully filing their VAT returns. Tax rules can be applied to the world of social influencers, usually in a fairly straightforward fashion, albeit that non-cash transactions can involve some complications. But the basic structures of the tax system can adapt. And there is no excuse for full-time influencers or those using their fame to earn additional income, not to be compliant. READ MORE In other areas, however, the taxation system is showing its age. In corporation tax, in particular, the complexity of international trade is a world away from when the system of taxing companies was drawn up. Fairness is an issue here, too, as it is the biggest players who have more options to cut their tax bills. An OECD agreement which was due to set a minimum level of tax for these giant corporations now looks like it is being picked apart. As this story plays out, there will be important issues for Ireland, which has attracted investment for many years by charging multinationals at a relatively low rate. Ireland can lay down its own income tax rules for the modern era, but when it comes to big multinationals it is an international game.
Sunday World
2 days ago
- Sunday World
OnlyFans user tried to write off racy clothing and sex toys as tax expenses
'I'm not sure if the partner can be classed as an employee' Sex workers have been trying to claim their lingerie and video props as tax-deductible items OnlyFans creators tried to claim racy clothing and sex toys as tax-deductible expenses in returns submitted to the Revenue Commissioners. The platform, widely used by sex workers and for pornography, has created headaches for Revenue over what performers can and can't write off as the costs of doing business. Internal emails show discussions over kinky wardrobe items, 'props,' hotel stays, mobile phone costs, and currency exchange from foreign subscriptions In one tax filing, an OnlyFans user tried to claim that purchases of clothing for use in risqué photos or videos should be a deductible expense. An email from one official said: 'We have received all invoices for the purchase of clothing, but we have received no breakdown between personal and business use.' The Revenue staff member asked whether there was any 'agreed consensus' on how much could be claimed. In one message, officials said they were not inclined to allow a deduction for 'clothing, underwear [and] lingerie.' '[Caseworkers] don't want to be getting into deciding whether an item of lingerie or underwear is dual purpose,' the official wrote. A later message said there had been one case involving an exotic dancer who declared 'nurse outfits, and stripper underwear type things.' These were 'essentially 'costumes' that would not be used in everyday life.' There were also discussions over a 'photoshoot hotel' where a performer had filmed material at accommodation. A message between officials said it would be deductible if it was 'wholly and exclusively for the purposes of business.' The email added: 'I think you will need to look at the entirety of the situation, it is definitely a case-by-case situation.' Revenue staff also had queries over how much of a phone bill could be attributed to work for OnlyFans. In many cases, performers will upload material using their mobile or keep in touch with subscribers online. An email said: 'I was going to allow €20 per month. [That would be] €240 per year for both years.' There were question marks too over how OnlyFans stars teaming up for content would be taxed with one performer receiving the money and later splitting it. An email said: 'From what I have read, these types of collaborations can be lucrative.' In the case concerned, the OnlyFans creator was told it was up to them to account for how the money was used and shared. 'I think the partnership approach is a very fair way to look at it,' said an email. 'I'm not sure if the partner could be classed as an employee.' The message said a key problem was that Revenue had 'no proof' of what was involved without subscribing to services. It said: 'We can't view the content and can't really corroborate the story being told.' There were also awkward questions over 'props' which were described as a 'murky area' for Revenue to untangle. 'In [one] case, the customer is claiming a deduction for expenditure incurred on sex toys,' said a message. 'I presume these are 'props' so are allowable.' A colleague responded: 'I don't know if I'd even want to ask this question myself. I would guess materiality would be a factor and invoices would be supplied. Again, I can't see why not.' Sex workers have been trying to claim their lingerie and video props as tax-deductible items News in 90 Seconds - Monday, August 4th It said there were also certain clear cut things like 'spotlights' that were definitely deductible. However, flowers or paintings used as a backdrop for photos or videos could not be claimed as they had a 'duality of purpose.' Asked about the discussions, which have taken place over the past number of years, a spokeswoman said Revenue was 'legally precluded' from talking about the tax affairs of identifiable individuals. She said: 'We are therefore not in a position to comment on any specific taxpayers or on the use of any one platform, such as OnlyFans.' The spokeswoman said Revenue recognised there had been significant growth in the use of digital platforms for earning through content creation and subscriptions. She said: 'Income earned through platforms such as OnlyFans is treated in accordance with existing tax legislation. There is no separate or distinct tax regime for content creators or platform-based earners.'
Irish Independent
2 days ago
- Irish Independent
Sexual content creators on OnlyFans site causing a headache for Revenue officials over expenses
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.
