The cost of fame: Regulation of taxes on income generated by online influencers

• Main Authors: Dizon, Mary Rose, Lo, Tiffany Ann, Yatco, Angelica
• Format: text
• Language: English
• Published: Animo Repository 2020
• Subjects: Internet personalities > Taxation—Law and legislation; Electronic commerce—Taxation—Law and legislation; Tax Law
• Online Access: https://animorepository.dlsu.edu.ph/etdm_law/16; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1021&context=etdm_law
• Institution: De La Salle University

“Online influencer” is developing as a career today. The content production of online influencers has become a necessity for businesses to reach consumers more effectively than traditional forms of marketing. As the demand for their work increases, the amount of their income likewise increases. Online influencers can earn up to millions from posting content online. However, because such online activities are not expressly covered by any law or regulation, the income earned from the same is not properly taxed and is open to abuse through tax evasion. In relation, due to the anticipated common risk of exposing children to potentially harmful user-generated content online, the necessity to regulate the social media posts of online influencers in pursuance of such career, arises. This study discusses the need to improve present tax laws in order to clarify the classification of online influencers as taxpayers by exploring the nature of the income they earn and the character of the income-generating activities they participate in. Furthermore, this study delves into the constitutionality of recommending improvements to the law to accommodate such classification, and the necessity for the regulation of social media through the exercise of the police power of the state.