High investigative pressure: defense of influencers accused of tax evasion

Influencers are increasingly becoming the focus of tax investigators. The tax investigation department in NRW has set up an investigation group. Focused audits, digital evaluations of secured data packages and coordinated measures increase the risk of prosecution for tax evasion. What is important now, how you can minimize risks and what an effective defence strategy looks like.

• Significantly increased pressure to control platform revenues, cooperations and in-app sales.
• Incomplete tax returns can lead to additional payments, interest and possibly criminal proceedings - ignorance is no defense.
• Risk areas: missing business registration, incomplete revenue recognition (paid posts, affiliate, merch), valuation of non-cash benefits, foreign reference, VAT traps.
• Act proactively: clean documentation, corrective declarations and early defense reduce the risk of criminal liability.

Why influencers are in focus

Digital business models are transparent. Revenue streams from cooperations, affiliate programs, platform monetization, merchandise and licensing can be traced almost seamlessly using technology. Tax investigators make consistent use of these possibilities - up to and including searches and the analysis of digital data if there is sufficient suspicion of tax evasion. For influencers, this means that formal and deadline violations, missing receipts or "gray areas" quickly become the starting point for corresponding investigations.

Typical areas of risk in the creator business

• Revenue mix: advertising revenue, sponsored posts, affiliate commissions, streaming/platform revenue, merch, dropshipping, licensing. Missing or incorrect allocation leads to differences between the declaration and the actual payment flow.
• Benefits in kind/PR samples: Product gifts may be taxable. The decisive factors are valuation, traceability and the distinction between private and business.
• Value added tax: small business regulation vs. standard taxation, reverse charge for foreign cooperation, electronic services, platform fees - shortfalls quickly arise here.
• Business expenses and input tax: Unclear allocation between private and business use (e.g. technology, travel, living space), missing receipts, incorrect invoices.
• Foreign connection: Income from foreign platforms or agencies, productions abroad, withholding taxes, question of a permanent establishment, double taxation risks.
• Organization/compliance: No or late business registration, missing registrations, cash register and receipt management, missing contract documentation.

How authorities proceed

Authorities rely on a variety of information sources: public postings, bookings via payment providers, platform reports, agency contracts as well as travel and event data. If the evidence becomes stronger, searches and seizures can be carried out; emails, contracts and chat histories are also regularly analyzed. Digital forensics are used here: metadata, the analysis of payment flows and the comparison of content calendars with cash inflows are among the established tools. Possible consequences range from back payments and interest on evaded payments to fines and criminal proceedings if there is suspicion of a crime.

Prevention: what you should do now

• Record revenue and contracts centrally: Platform reports, cooperation agreements, affiliate dashboards, payment receipts, travel expenses, product shipments.
• Document the valuation logic: How were benefits in kind valued? What distinction was made between private and business?
• Keep an eye on sales tax: Check standard taxation, apply reverse charge correctly, keep invoices with mandatory information.
• Clearly structure foreign cases: Contracting party, place of performance, withholding taxes, DBA check, evidence.
• Establish processes: Monthly reconciliation of bank/payment data with revenue lists, document workflows, approvals.

If already under investigation: Defense strategy

• Keep calm and do not make spontaneous statements without legal advice.
• File inspection and quick inventory: Which years, which facts, which data have been saved?
• Risk analysis and prioritization: Where are punishable accusations imminent, where can the facts be clarified?
• Subsequent declaration/correction: Proper correction declarations can mitigate penalties; timing and completeness are crucial.
• Communication line: Uniform, factual communication with the investigating authorities, clearly defined contact persons.
• Forensic processing: reconstruction of payment flows, contract chains and valuation decisions.

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