A new wave of checks OnlyFans model?

When a person receives income, they are required to declare it and pay taxes. Such citizens file an annual declaration of their assets and income. A declaration for the previous year must be filed by May 1 of each current year. It should be noted that, under tax information exchange agreements with other countries, Ukraine has gained access to data on its citizens' income received on foreign online platforms. In particular, there has recently been an increase in the number of authorized representatives of the State Tax Service sending letters and TND (tax notifications decisions)  income received by individuals on the OnlyFans platform.

Mandatory income declaration and the procedure for filing a property declaration

The deadlines for filing the relevant declaration were indicated above. Regarding the procedure itself, the document can be submitted through the Taxpayer's Electronic Account. If a person fails to do so and tax authorities discover their income, they have grounds to collect not only the taxes themselves but also a penalty equal to 25% of the unpaid tax liability.

Furthermore, there is a significant risk of encountering representatives of the Bureau of Economic Security when dealing with large amounts of income hidden from the state.

As for taxes payable on income earned on foreign online platforms, these include:

• Personal Income Tax (18%);
• Military Tax (5%).

If tax authorities discover non-payment of these taxes, the aforementioned 25% penalty will be added.

Obtaining income information for 2023-2024

Recently, we've seen an increase in requests from the tax authorities. The timeframe and procedure for responding to these requests are stipulated by current legislation. Briefly, as a general rule, a response to such a request must be provided within 15 business days. When you receive a request from the tax authorities, it's best to immediately seek advice and support from a reliable tax lawyer who can help provide the State Tax Service with a competent and legally sound response. This will help prevent further legal problems.

Conducting a tax audit and appealing the audit report

Obtaining income data from OnlyFans models is now possible under the Double Taxation Convention. Tax authorities receive the data automatically. According to the Convention, Ukraine provides for taxation of income that has not been taxed in the UK itself, given that the individual is not a resident.

It's important to note that Article 72 of the Tax Code lists sources from which tax authorities can obtain information. These sources include data from:

• persons acting as financial agents;
• government bodies of other countries;
• international organizations and non-residents.

When it comes to appealing an audit report and tax notice decision, in many cases there are grounds to appeal a failure to comply with procedural requirements. This is because the Tax Code sets out a clear procedure for conducting an audit. If this procedure is violated, the audit result may also be deemed unlawful. Therefore, there will be grounds for overturning the tax notice decision.

In any case, to understand the prospects for an appeal, it is necessary to carefully analyze the situation. This is precisely what we do during the initial consultation, when we examine the client's situation.

Appealing the TND in administrative and judicial proceedings

When you contact our specialists, we offer two options for appealing a tax notice decision: administrative and judicial. The administrative approach involves filing a complaint with the highest authority of the State Tax Service (STS) and submitting supporting documents that substantiate the validity of the circumstances cited in the complaint. STS representatives may, after reviewing the complaint, overturn the TND or deny it.

The other appeal route is judicial. Going to court allows you to effectively challenge the actions of tax authorities if the audit was conducted with procedural violations and the issuance of the TND is unfounded.

To appeal a TND administratively, you have 10 business days from the date of its receipt. As for judicial appeal, there are two main deadlines:

• 3 months if you previously attempted to appeal the TND administratively;
• 6 months if you did not pursue administrative action.

Our tax lawyers will thoroughly analyze your situation and help you understand it, determining the optimal course of action. To order our services, please fill out the contact form on our website. A specialist specializing in tax law will then call you back.