The North Rhine-Westphalia tax authority (LBF NRW) has launched an investigation into professional influencers suspected of large-scale tax evasion, with some earning tens of thousands of euros monthly without proper tax identification.

To combat this, the LBF NRW has adopted advanced investigative techniques to trace advertising partnerships and income streams, setting a precedent for other regions.

The agency is analyzing a dataset of 6,000 records from various social media platforms to uncover the extent of financial misconduct and potential tax damages.

A specialized team within the state has been established to scrutinize social media profiles, verify income against tax declarations, and fight financial crime related to influencer activities.

Currently, the LBF NRW is conducting around 200 criminal investigations related to influencer tax evasion, highlighting the scope of the crackdown.

Severe penalties, including fines and imprisonment, can be imposed for tax evasion, with prosecution possible up to 15 years, and even minors can be held criminally liable.

The agency has formed Germany’s first 'Influencer Team' comprising approximately 1,200 tax investigators since January 2025, dedicated to monitoring the influencer scene.

The investigation targets both social media influencers and their advisors, emphasizing a comprehensive approach.

Finance Minister Marcus Optendrenk stressed the importance of tackling large-scale tax evasion, especially where significant profits are involved.

Germany's worldwide income principle requires citizens to pay taxes on all income, regardless of where it is earned, complicating evasion efforts through relocation abroad.

The estimated financial damage to the state due to this tax evasion is approximately 300 million euros, with some cases involving millions in unpaid taxes.

Collecting evidence is challenging, particularly for temporary social media content like stories, but NRW is developing innovative methods to trace advertising partnerships and revenue streams.