OnlyFans models who received notices from tax authorities about additional tax assessments of hundreds of thousands of hryvnias are appealing these notices-decisions in court. So far, not everyone has been able to prove the tax authorities wrong, but there are already successful cases. Here are three stories with different endings.
OnlyFans models who received notices from tax authorities about additional tax assessments of hundreds of thousands of hryvnias are appealing these notices-decisions in court. So far, not everyone has been able to prove the tax authorities wrong, but there are already successful cases. Here are three stories with different endings.
The Kirovohrad District Administrative Court considered a case in which the OnlyFans creator requested to declare unlawful and cancel the tax notice-decision, according to which the tax authorities assessed her for payment for 2022 personal income tax from entrepreneurial activity in the amount of UAH 258,192.60, military duty — UAH 21,516.05, as well as a fine for failure to submit a tax declaration on property status and income of UAH 340.
The court ordered the State Tax Service of Ukraine to provide the court with information provided by the competent authorities of the United Kingdom of Great Britain and Northern Ireland, which is referenced in the letter from the State Tax Service of Ukraine to the creator.
The plaintiff claims that the tax authorities concluded that the plaintiff received income from sources outside Ukraine during 2022 illegally, which is why she decided to appeal the decision. The tax authorities claim that in 2020-2022, the girl earned $31,380, which she did not declare.
Having considered the documents provided by the parties, the court found that the plaintiff did not submit a tax declaration on property status and income for 2022 to the regulatory authority. This was the reason for the additional assessment of the tax liability for personal income tax for 2022 in the total amount of UAH 206,554.08.
However, the tax notice indicates a larger amount — UAH 258,192.60. of which UAH 206,554.08 is the main obligation, UAH 51,638.52 is fines. The amount includes UAH 21,516.05 of military duty with a fine.
The court denied the plaintiff’s request because it saw no grounds for annulling the contested tax notices-decisions.
The Odessa District Administrative Court, in a similar lawsuit filed by an «OnlyFans» against tax authorities, made a different decision — in favor of the OnlyFans creator.
The girl filed a lawsuit with the Main Department of the State Tax Service in the Odessa region to declare the tax notices-decisions regarding additional tax assessments illegal and cancel them.
Tax authorities have information that the creator received income from the British entity «Fenix International Ltd» for creating content on the OnlyFans platform during 2021-2022 in the amount of $117,427, including: 2021 — $66,659, 2022 — $50,768.
The Main Department of the State Tax Service in the Odessa region notified the girl by letter about the need to submit declarations of property status and income for 2021-2022. This letter was sent to the address of «Ukrposhta». A non-delivery message with the mark «after the expiration of the storage period» was received from the operator of «Ukrposhta», and the message was returned to the sender.
Regarding the girl, an unscheduled on-site inspection was carried out to check the timeliness, reliability, and completeness of the calculation and payment of the due amounts of personal income tax and military levy on the income received.
The conclusion of the inspection report states that the following violations were found:
The postal item was returned to the Main Department of the State Tax Service in the Odessa region with a mark «after the expiration of the storage period.»
Meanwhile, Odessa tax authorities issued additional tax notices-decisions regarding the «online fan»:
The specified tax notices-decisions were sent by the Main Department of the State Tax Service in the Odessa region to the tax address and returned to the regulatory body with a mark «after the expiration of the storage period». Considering the specified tax notices-decisions to be unlawful, the plaintiff filed a lawsuit with the court to have them canceled.
The court decided that in this case the supervisory authority did not find out the location of the addressee, who was never registered as an individual entrepreneur, but sent the correspondence to a tax address where the plaintiff does not reside. Therefore, the girl’s claim was satisfied — all tax notices were declared unlawful and canceled.
In addition, a court fee in the amount of UAH 9,054.45 was collected from the Main Department of State Tax Service in Odessa region at the expense of its budget allocations in favor of the creator.
The Khmelnytskyi District Administrative Court considered a similar case in June — the creator of OnlyFans is suing the Tax Service regarding additional tax assessments on the income she received.
The plaintiff filed a lawsuit with the Main Department of the State Tax Service in Khmelnytskyi region to declare the tax notices-decisions illegal and cancel them.
The justification for the claims states that the request to the plaintiff to provide documents and information does not contain any reference to the source of information, nor the amounts of income, nor the number of transactions, but only a general reference to the plaintiff’s possible receipt of income from the British business entity Fenix International Ltd for creating content on the OnlyFans platform for 2021-2022.
Tax authorities conducted a documentary unscheduled on-site inspection of the creator regarding the completeness of the calculation of taxes and fees on income received from the British business entity Fenix International Ltd for creating content on the OnlуFans platform, control over compliance with which is entrusted to regulatory authorities for the period from 01.01.2021 to 12.31.2022.
Based on the results of the inspection, an act was drawn up and an understatement of the tax liability for personal income tax was established in the amount of UAH 893,878.21, including UAH 235,821.13 in 2021 and UAH 658,057.08 in 2022.
A verification of the correctness of the calculation of military duty on the amount of income received from the British business entity Fenix International Ltd for creating content on the OnlyFans platform revealed its understatement in the amount of UAH 74,489.85, including UAH 19,651.76 in 2021 and UAH 54,838.09 in 2022.
The court draws attention to the fact that the tax authorities determined the plaintiff’s income solely on the basis of the letter from the State Tax Service of Ukraine, the information from which it found sufficient to conclude that the plaintiff received income from the British entity Fenix International Ltd for 2020-2022. However, the specified letter from the State Tax Service of Ukraine is not a primary document within the meaning of the norms of the Tax Code of Ukraine, but is a means of correspondence between the State Tax Service of Ukraine and the Main Department of the State Tax Service of Ukraine in Khmelnytskyi region. The conclusion in the act of the documentary unscheduled inspection that the plaintiff created content on the OnlyFans platform in 2020-2022, as a result of which she received taxable income, is not based on proper, reliable and sufficient evidence.
The court decided that the contested tax notices-decisions were adopted by the defendant without taking into account all the circumstances of the case, were unfounded, and therefore are unlawful and subject to cancellation.
In addition, UAH 8,591.08 of court fees were collected from the State Tax Service in favor of the creator at the expense of budget appropriations of the Main Department of the State Tax Service in Khmelnytskyi region.
