3 https://finance.yahoo.com/news/sharing-economy-market-size-2023-141551534.html 4 https://www.ukpropertyaccountants.co.uk/cracking-down-on-airbnb-tax-evasion- hmrcs-latest-measures/ New trends and platforms are popping up, creating more challenges for tax authorities. Tax authorities are attempting to crack down on offenders ranging from small businesses to individuals supplementing their main income. While regulations and resources are often focused on large players, thousands of small businesses and individuals are evading taxes. These small fish are extremely difficult to identify, prioritize, and investigate. Some of the most problematic trends include: The sharing economy is estimated to have a global market size of nearly $150 billion and includes platforms like Airbnb 3 . Although platforms are often required to share data with tax authorities, many users are unaware of their tax obligation or unwilling to report their income. In early 2023, the UK threatened noncompliant Airbnb hosts who fail to declare earnings with the possibility of a comprehensive 20-year tax investigation. This action follows UK treasury estimates that over 50% of property owners are unaware that they must pay taxes on their rental income 4 . Tax evasion in the digital economy Sharing economy + $150M global market size + Crackdowns in the UK, where 50% of Airbnb owners don’t report income Case study Discover how NEXYTE helped a leading tax authority combat e-commerce tax evasion >> 3 Combatting Tax Evasion in the Digital Marketplace 2 Challenges for Tax Authorities 4 About NEXYTE 3 1 Tax Evasion in the Digital Economy