Social-Influencer Freebies Worth Billions Present Tax Temptation

On a September day in Marrakesh, Morocco, with the heat peaking at 108 degrees Fahrenheit, more than 100 powerful individuals wielding the ability to influence spending of thousands of people arrived at Arabesque hotels with rates as high as $1,000 per night.

They rode through the desert on pompom-adorned camels. Makeup artists pampered them with products that most people couldn’t yet buy. One day culminated with an “Arabian Nights"-themed candlelit dinner of small plates, washed down with pastel-colored cocktails, under an outdoor tent decorated with roses and pillows in the shades of Clinique’s orange, pink, and red. Fire performers twirled ...