Influencers, popular websites come under tax scrutiny
The intense social media activity of certain popular influencers has led the Independent Authority for Public Revenue (AADE) to inspect those who directly or indirectly advertise products. The focus is on whether the income they earn from advertising products on Instagram, TikTok and Facebook is declared in their tax returns.
The first audit yielded a scoop, according to AADE officials, as not only had the income from advertising products not been declared, but the influencer in question, a well-known model, is also a shareholder in the company that represents them in Greece.
The audit had been launched in order to determine whether she had declared the income in her tax return. However, the auditors also found that the influencer led viewers to a specific e-shop, in which she is also a shareholder. The company’s turnover was audited to see if what had been declared was correct. The courier business with which the e-shop in question works was identified, and all deliveries made on the e-shop’s behalf were requested. The data was cross-checked, and there was a disparity between the amount declared by the company and the amount declared by the e-shop.
For two audited tax years, it was discovered that about €350,000 of tax liability had been concealed due to non-issuance of tax information, for which the audited company voluntarily submitted forms, both in income tax and VAT. Following that, the total amount of taxes and fines for the two audited years was €270,000. The fine was imposed on the online shop, which also means the influencer will face additional penalties for the money earned for advertising the products. The funds received were reportedly not declared.
AADE auditors are also targeting specific websites.
