The Supreme Court returned to the Administrative District Court for re-examination the case on the taxation of funds received from the live broadcast of video games, the court told LETA. Having established that one of the essential aspects for resolving the dispute was not assessed, the decision of the Administrative District Court was canceled and the case was sent for new consideration. The applicant conducted live broadcasts of video game games and broadcast them on his channel on the video hosting site Youtube and on the video game streaming service Twitch. For this he received voluntary payments from users. The State Revenue Service (SRS) considered that the young man was engaged in unregistered economic activity and received taxable income. Personal income tax, late payment penalties and fines totaling almost €14,000 were calculated accordingly. The applicant did not agree with the institution’s decision and went to court. Having overturned the district court's decision to refuse the application, the Administrative Court recognized as correct the district court's conclusion that the applicant carried out economic activities and received taxable income. But unlike the district court, the Supreme Court recognized that videos and live broadcasts of video games can be considered copyrightable if certain criteria are met. Therefore, it is necessary to evaluate whether a particular provision regarding deductible expenses of authors and performers is applicable. As stated, the district court reasonably established the presence of signs of economic activity. The direct connection between the activities carried out by the applicant and payments from users allows us to conclude that the applicant provides services to individuals for a fee. Independent and regular creation and broadcast of content in a virtual environment, combined with receipt of compensation, indicates a clear intention to earn income. The applicant's professional approach to managing and optimizing payments received from viewers using the products offered by Streamlabs.com is also taken into account. Therefore, there is no doubt that the payments received by the applicant from television viewers can be considered as income received as a result of economic activity, the SRS believes. A video recording of playing a video game can be recognized as an object of copyright – a derivative audiovisual work – if it is created by an individual and creativity is invested in it. Whether specific videos can be recognized as objects of copyright must be verified by considering the case on its merits, the Supreme Court notes. If it is recognized that the applicant created protected copyright objects and received remuneration in connection with them, there will be a basis for assessing the attribution of reasonable expenses to the applicant’s labor income.