Influencers on the net (of the tax investigation)
Social media, stories, tax evasion?
Influencers are increasingly the focus of tax investigations. In North Rhine-Westphalia, the State Office for Combating Financial Crime, which was founded at the beginning of 2025 and has around 1,200 specialists, has initiated numerous proceedings for tax evasion. The accusation is that many content creators are not paying tax on their income in full or at all – in some cases even systematically. The proceedings initiated so far relate to an allegedly evaded sum of around 300 million euros. And this is just the beginning: the tax investigation is analysing a package of several social media platforms with 6,000 data records. It can be assumed that the number of investigations will increase significantly – even beyond national borders. Other federal states are already working on similar initiatives.
Influencers are shaping the zeitgeist – and generate considerable income with advertising, collaborations and digital content. Whether product placements, hotel stays, clothing, cosmetics, affiliate links, donations or merchandise: the monetisation opportunities are diverse and often confusing. This is precisely where the state comes in. The tax authorities see a considerable need to catch up with many influencers and have set up a special social media unit in North Rhine-Westphalia. The aim: to trace advertising partnerships and income and document them with reliable evidence. There is a threat of requests for information from advertising partners, search warrants or, in the worst case, arrest warrants. Even relocating abroad – to Dubai or Cyprus, for example – does not automatically provide protection: unlimited tax liability is not solely linked to the place of residence, but is largely based on the centre of life:
"Anyone who stays in Germany
remains liable for tax."
What needs to be done?
Complete tax documentation is essential: incoming and outgoing invoices must be kept; income in cash and in kind, co-operations, operating expenses – all of this must be properly recorded. Tax returns must be submitted completely and correctly. Early tax advice and the formation of financial reserves are also advisable.
In an emergency: act!
If a tax return has not been submitted or has been submitted incorrectly, a voluntary disclosure exempting from prosecution in accordance with Section 371 AO may offer a last resort. However, this is only effective under strict conditions. Errors, omissions or the discovery of the offence by the tax authorities exclude the effect of a voluntary disclosure exempting from punishment. As soon as preliminary proceedings have been initiated or a hearing letter has been sent, it is usually too late.
Then it’s time to defend yourself. Because even the authorities do not do everything right. An experienced legal adviser can recognise possible mistakes and take advantage of them. Even if the criminal charge can no longer be completely ruled out, the sentence can be positively influenced in many cases.
Would you like to check whether a voluntary disclosure can be effectively submitted in your case to avoid prosecution? Are you already under investigation? We advise you efficiently, personally and with many years of experience in tax (criminal) law.
tl;dr
The tax authorities are better equipped in terms of technology and personnel than ever before. Anyone who earns money on Instagram, TikTok & Co. is increasingly under scrutiny from a tax perspective. An incomplete or missing declaration of income can not only result in unpleasant investigative measures, but can also have consequences under criminal law. If a correct tax return has not yet been submitted, a voluntary declaration can help – but only if it is complete and submitted in good time. If it is too late for this, the results of the tax investigation should be carefully scrutinised and, if possible, influence the outcome of the proceedings.
In any case, there is an urgent need for action.
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