Tax investigators target influencers – LBF NRW intensifies investigations into tax evasion in the digital space

With a clear signal to a new target group, the State Office for Combating Financial Crime in North Rhine-Westphalia (LBF NRW) is demonstrating how consistently the financial administration is taking action against tax crimes in the digital space. Over 6,000 data records from social media platforms are currently being evaluated, with an estimated tax liability of around 300 million euros. The LBF NRW's "influencer team" is currently conducting around 200 criminal proceedings against social media players in North Rhine-Westphalia – and the number is rising. The focus is on professional influencers who earn five-figure sums each month from advertising revenue, subscriptions, and platform fees without declaring this income to the tax authorities. In some cases, those affected use complex foreign structures to conceal their tax residence in Germany. The LBF NRW press release of July 17, 2025, makes it clear that the authorities have sophisticated investigation methods, international cooperation, and relevant expertise at their disposal. What's more, other countries are now adopting the methods used in North Rhine-Westphalia.

Criminal liability risks: What are the consequences of undeclared income?

The income of influencers is diverse: remuneration for clicks, product placements, subscription models, digital tips, or sales via platforms. Regardless of the platform or type of income, the following applies: Anyone who earns taxable income must declare it in full in their tax return, as this is regularly subject to income tax, sales tax, or, in some cases, trade tax. Otherwise, depending on the individual case, severe penalties may be imposed.

Tax evasion (Section 370 AO) and reckless tax evasion (Section 378 AO)

Anyone who violates their tax obligations will quickly find themselves facing charges of tax evasion (Section 370 AO). Criminal liability for tax evasion is particularly likely if

• incorrect or incomplete information is provided to the tax authorities or other authorities about facts that are relevant for tax purposes (No. 1), or
• the tax authorities are deliberately kept in ignorance of facts relevant to taxation (No. 2)

and this results in a reduction in taxes or unjustified tax advantages for oneself or another person.

If, therefore, income from advertising partnerships, product sales, clicks, affiliate links, etc. is not declared in the influencers' tax returns and thus no income or too little income is declared, this may constitute incorrect information or a breach of duty to inform within the meaning of Section 370 of the German Fiscal Code (AO). On a subjective level, tax evasion requires intentional action. The tax authorities seem to assume this to be the case in these instances, according to the press release:

"This is not a case of being overwhelmed by sudden fame, but of immense tax evasion with knowledge and intent."

The criminal consequences are significant: fines or imprisonment of up to five years, or up to ten years in particularly serious cases.

If the influencer cannot be proven to have acted intentionally, an administrative offense of reckless tax evasion pursuant to Section 378 of the German Fiscal Code (AO) may be considered. A person acts recklessly if they disregard the duty of care to which they are bound under the particular circumstances of the case and their personal abilities and knowledge, even though it must have been obvious to them that this would result in tax evasion. Such a penalty also remains a serious risk, as substantial fines are also possible here. Simply claiming ignorance ("I didn't know") does not automatically protect against sanctions.

Possible solution: submission of a voluntary disclosure exempt from punishment pursuant to Section 371 AO

Under certain circumstances, it may be advisable to submit a voluntary disclosure exempt from punishment. Anyone who fully corrects incorrect information, supplements incomplete information, or provides omitted information to the tax authorities regarding all tax offenses of a particular type of tax will not be punished for these tax offenses under Section 370. However, such a voluntary disclosure only exempts you from punishment as long as the offense has not yet been discovered. In addition, all legal requirements must be met, including the timely payment of the evaded taxes plus interest. For this reason, a voluntary disclosure requires specific legal and tax advice. Mistakes can jeopardize the exemption from punishment.

Practical note

Current developments show that criminal tax risks in the digital space – especially in professionally operated social media activities – are no longer a marginal phenomenon. The tax authorities are increasingly acting in a data-driven, coordinated manner and with considerable enforcement power.

Even if you have not yet been contacted by the tax authorities, there is no reason to be complacent. High media visibility, regular income, and cross-border structures can be enough to attract the attention of criminal tax investigators. Such criminal proceedings may also result in searches or arrest warrants. In this case, you should consult a specialized lawyer under all circumstances.

In order to avoid such criminal tax proceedings, you should not hesitate to make a correction that will exempt you from punishment: An effective voluntary disclosure is only possible before the offense is discovered and must meet strict legal requirements. Without sound advice on criminal tax law, you quickly risk losing your exemption from punishment.