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The Sixth Administrative Court of Appeal annulled additional tax assessments against an OnlyFans model: the tax authorities did not prove the receipt of income
🚨 A letter from the Brits is not proof yet
The Sixth Administrative Court of Appeal issued an important decision for the practice of taxing income from foreign platforms.
This was reported by the Telegram channel "Court on Schemes" with reference to case No. 620/7144/25.
⚖️ Essence of the dispute: the tax authority versus an OnlyFans model
The Main Department of the State Tax Service in Chernihiv region conducted an off-site audit of Yuliya Yarova for the years 2021–2022. Based on information from the UK Tax and Customs Authority (HMRC), the tax authorities concluded that she received from Fenix International Ltd (owner of OnlyFans) more than 60 thousand US dollars ($21 215 for 2021 year and $38 991 for 2022 year).
As a result of the audit, the STS issued tax notices-decisions, which additionally assessed:
• 424 982,67 UAH — personal income tax (including financial penalties);
• 35 415,22 UAH — military levy;
• 340,00 UAH — penalty for failure to submit a declaration of assets and income;
• 8 000,00 UAH — penalty for failure to provide documents in response to the tax authorities' request.
Yuliya Yarova appealed to the court, stating that she did not enter into written contracts with Fenix International Ltd, did not have accounts abroad, and that the STS letter itself is not a primary document confirming the actual receipt of funds.
📜 Why the first instance lost and what the appellate court found
The Chernihiv District Administrative Court initially sided with the tax authorities. However, a panel of judges of the Sixth Administrative Court of Appeal annulled that decision and fully granted Yuliya Yarova's claim, noting the following key points:
• Lack of evidence of fund transfers: The tax information from the British authorities did not contain details on how and to which accounts the funds were transferred (bank transfer, electronic wallet, etc.). The tax authorities did not confirm the mere fact of receiving money with any primary or banking document.
• Inadequate verification measures: The Court emphasized that the STS had the opportunity and the right to send an official special request to the foreign competent authority in accordance with Procedure No. 118 to obtain clear confirmations of the movement of funds. However, the tax authorities did not do this and tried to shift the burden of proof onto the taxpayer.
• Illegal penalty of 8 000 UAH: The STS request for documents did not meet the requirements of Art. 73 of the Tax Code of Ukraine, because it did not contain confirmed facts of a violation, but only demanded that the taxpayer provide evidence against themselves.
📌 Court resolution
As a result of the case hearing on 09 September 2026, the Sixth Administrative Court of Appeal ruled to issue a new decision fully satisfying Yuliya Yarova's appeal:
1. The decision of the Chernihiv District Administrative Court dated 05.05.2026 is annulled.
2. All four tax notices-decisions of the Main Department of the STS in Chernihiv region in the total amount of over 468 thousand UAH are recognized as unlawful and annulled.
3. From the budgetary allocations of the tax authority in favor of the plaintiff, 10 312,24 UAH of court fees have been recovered.
Telegram publication