Tax Evasion: Italy To Seize $835M From Airbnb
Category: World News
An Italian judge has ordered the seizure of €779.5m ($835.5m; £676.8m) from short-term rental giant Airbnb, over alleged tax evasion.
Prosecutors say the firm failed to collect a tax from landlords on around €3.7bn of rental income.
Landlords in Italy are required to pay a 21% tax on their earnings.
Airbnb told the BBC that it was “surprised and disappointed at the action announced by the Italian public prosecutor”.
Airbnb spokesperson Christopher Nutly said the firm’s European headquarters had been working to resolve the matter with the Italian tax agency since June.
Mr Nutly added “We are confident that we have acted in full compliance with the law and intend to exercise our rights with respect to this issue.”
Three people who held managerial roles at Airbnb from 2017 to 2021 were also under investigation, Milan Tribunal prosecutors said in a statement.
In 2022, Airbnb challenged the Italian law requiring the company and other short-term rental providers to withhold 21% of the rental income from landlords and pay it to tax authorities.
The firm argued that Italy’s requirements on taxation contravened the European Union’s principle of freedom to provide services across the 27-country bloc.
The EU’s top court later ruled that Airbnb should abide by the requirements.
An Italian judge has ordered the seizure of €779.5m ($835.5m; £676.8m) from short-term rental giant Airbnb, over alleged tax evasion.
Prosecutors say the firm failed to collect a tax from landlords on around €3.7bn of rental income.
Landlords in Italy are required to pay a 21% tax on their earnings.
Airbnb told the BBC that it was “surprised and disappointed at the action announced by the Italian public prosecutor”.
Airbnb spokesperson Christopher Nutly said the firm’s European headquarters had been working to resolve the matter with the Italian tax agency since June.
Mr Nutly added “We are confident that we have acted in full compliance with the law and intend to exercise our rights with respect to this issue.”
Three people who held managerial roles at Airbnb from 2017 to 2021 were also under investigation, Milan Tribunal prosecutors said in a statement.
In 2022, Airbnb challenged the Italian law requiring the company and other short-term rental providers to withhold 21% of the rental income from landlords and pay it to tax authorities.
The firm argued that Italy’s requirements on taxation contravened the European Union’s principle of freedom to provide services across the 27-country bloc.
The EU’s top court later ruled that Airbnb should abide by the requirements.
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