Airbnb Faces Tax Evasion Investigation in Italy
Airbnb, the popular short-term home rental company, has come under scrutiny in Italy for alleged tax evasion. The investigation, led by the Milan Prosecutor's Office, accuses Airbnb of failing to pay a 21% tax on its European headquarters' revenue in Ireland, amounting to 3.7 billion euros between 2017 and 2021.
Seizure of Funds and Ongoing Investigation
As part of the investigation, Italian authorities have seized a staggering 779 million euros from Airbnb. Additionally, the probe is targeting three individuals who held managerial positions at the company during the mentioned period. This development comes after Airbnb's previous objection to an Italian law regarding rental taxes was rejected by the European Court of Justice in December.
Airbnb's Response and Italian Government's Plans
Airbnb officials expressed surprise and disappointment at the prosecutor's decision. They highlighted their ongoing discussions with the Italian tax authority since June 2023, demonstrating their commitment to resolving the issue. Airbnb firmly believes in operating in full compliance with the law and intends to assert its rights.
Meanwhile, the Italian government has announced its intention to intensify scrutiny of homeowners involved in short-term home rentals. Moreover, there are plans to raise the tax rate from 21% to 26% for individuals renting multiple properties. The government aims to generate approximately 1 billion euros in additional revenue through this measure.
