Few / none who pay out money report to Government revenue agencies about how much they paid and specifically to whom. But you can bet yer arse that if the Govt goes to someone who is writting stuff off on their end, they will tell the Govt whom the money went to, and exactlly how much. Paypal will not be sending letters to any revenue agency about whom made how much, but if the govt asks of them, the book on you will be handed over quicker than you can get in your car and drive off to Mexico or Switzerland (depending on yer continent
).