David Rotfleisch on How to Come Clean About Unreported OnlyFans Income to Canada Revenue Agency (CRA)

€350K Tax Settlement Reached by OnlyFans Model “The Irish Viking”

‘The Irish Viking,’ a known OnlyFans model, has appeared on Ireland’s latest tax defaulters list after settling a tax liability of more than €350,000. Matthew Gilbert, a popular social media figure with a significant online following, was found by Irish Revenue to have under-reported income totalling €61,734.

According to the Revenue’s defaulters list, Gilbert—who lives in Killians Glen, Rathdrum, Co. Wicklow—is listed as an online content creator. A tax audit determined he owed €88,681, including penalties, for under-declared income tax.

In a 2021 interview, Gilbert, also known as Matty, revealed he was earning over €54,000 per month from around 3,000 paid OnlyFans subscribers. He launched the account after his barber shop closed during the COVID-19 pandemic, adding that about 85% of his audience were women.

Beyond OnlyFans, Gilbert has built a substantial social media following, boasting over 600,000 followers on TikTok, more than 200,000 on Instagram, and 500,000 on X (formerly Twitter). His company, Matty Irish Viking Limited, also appeared on Ireland’s tax defaulters list with a total liability of €266,693.

The business, registered on Dame Street in Dublin city centre, was found to have under-reported several taxes—including corporation tax, PAYE, PRSI, USC, and VAT—by €191,464. Once interest and penalties were applied, the total amount owed rose to €266,693. Irish Revenue has confirmed that both Gilbert and his company have since fully settled their outstanding tax obligations.

How CRA Auditors Track Down Unreported OnlyFans Income in Canada

The Canada Revenue Agency (CRA) is closely monitoring social media influencers, including OnlyFans content creators, to uncover unreported income and ensure tax compliance. CRA tax auditors scrutinize online content for signs of undisclosed wealth—such as luxury assets or prize money—and cross-reference it with individuals’ tax filings.

According to CRA Assistant Commissioner Ted Gallivan, publicly shared content can be used as evidence to initiate conversations with influencers about their tax responsibilities. The agency’s objective is to identify non-compliance, recover unpaid taxes, and promote voluntary compliance.

After conducting initial research into OnlyFans revenue, the CRA has moved into an enforcement phase, targeting influencers and creators earning over $500,000 annually. A specialized tax audit team of 60 professionals has been assigned to investigate unreported digital income.

Using open-source intelligence tools, the CRA analyzes publicly available social media data to spot red flags. It also focuses on educating digital creators about their tax obligations. To date, the tax agency has completed 40 tax audits, uncovering $500,000 in unpaid taxes, with another 200 tax audits currently in progress.

To support its digital tax enforcement efforts, the CRA has enlisted consulting firms and tightened oversight of global digital platforms. As of July 1, 2021, under the new digital tax legislation, platforms like Google, Netflix, and Airbnb are required to collect GST/HST from Canadian users—a measure expected to generate $1.2 billion over five years. The CRA has also received $606 million in new funding to target international tax evasion and aggressive tax avoidance.

Application for Voluntary Disclosure

For OnlyFans content creators who haven’t fully reported their income, the best path to compliance is through a voluntary disclosure application. This program offers significant benefits, including relief from penalties, partial interest reductions, and protection from criminal prosecution.

The Voluntary Disclosures Program (VDP) allows non-compliant Canadian taxpayers to correct past tax mistakes—whether by amending previously filed returns, reporting omitted income, or fixing inaccuracies—and re-enter the tax system without facing the full consequences of non-compliance.

To qualify for relief under the VDP, four key conditions must be met:

1. Voluntary Submission: The disclosure must be made before the CRA initiates any tax audit, investigation, or enforcement action related to the issue.

2. Complete and Accurate Disclosure: The taxpayer must provide full and truthful information for all affected years or reporting periods.

3. Potential for Penalties: The disclosure must relate to a situation where penalties would normally apply. If the correction doesn’t involve potential penalties, the application may not qualify.

4. Information More Than One Year Overdue: The information being disclosed must relate to a tax obligation that is at least one year past due.

It’s important to understand that the CRA’s Voluntary Disclosures Program only applies to the most recent ten years. This means any disclosure must relate to tax years within the past decade. This ten-year limit is referred to as the Limitation Period for Discretionary Relief of Penalties and Interest.

Tax Pro Tips – The CRA Has the Authority to Decide Whether to Accept a Voluntary Disclosure Application

The Voluntary Disclosures Program (VDP) offers two distinct streams: Limited Relief and General Relief. The Limited Relief stream is intended for cases involving deliberate tax non-compliance or for corporations with gross revenues exceeding $250 million.

The General Relief stream is available to most other taxpayers and provides full relief from penalties and 50% relief on interest charges, excluding the most recent three years. However, because each application is assessed individually, it is strongly recommended that taxpayers consult an experienced Canadian tax lawyer to improve their chances of being accepted under the General stream.

Frequently Asked Questions (FAQs)

What Is the Voluntary Disclosures Program (VDP)?

The Voluntary Disclosures Program (VDP) offers case-by-case relief to taxpayers and registrants who voluntarily correct errors or omissions in their tax filings—provided they do so before the Canada Revenue Agency (CRA) initiates any audit, investigation, or contact regarding the matter.

What Are the Requirements for a Valid Voluntary Disclosure?

To qualify under the VDP, your disclosure must meet the following criteria:

• Voluntary – The CRA must not have already contacted you regarding the issue.
• Complete – You must provide full and accurate information for all relevant years.
• Penalty Exposure – The error or omission must involve potential penalties.
• At Least One Year Old – The information being disclosed must relate to a taxation year that ended at least one year prior to the application.

How Is the CRA Monitoring Social Media Influencers and OnlyFans Models?

The CRA is actively targeting social media influencers and OnlyFans creators to ensure they are reporting their income accurately. These individuals are subject to compliance reviews and tax audits.

The CRA relies on open-source intelligence to detect unreported income earned by social media influencers. This approach involves collecting, analyzing, and interpreting publicly available data from online platforms—such as posts on Facebook, Twitter, and other social media channels—linked to the influencer’s digital activity.

Disclaimer: This article just provides broad information. It is only up to date as of the posting date. It has not been updated and may be out of date. It does not give legal advice and should not be relied on. Every tax scenario is unique to its circumstances and will differ from the instances described in the articles. If you have specific legal questions, you should seek the advice of a Canadian tax lawyer.

Image by taxpage3 via Ideogram