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Suspected fiscal evasion, the Italian police seize 779 million euros from Airbnb

2023-11-08 10:27:38Biznes SHKRUAR NGA REDAKSIA VOX

Suspected fiscal evasion, the Italian police seize 779 million euros from Airbnb

Italy's financial police have seized over 779 million euros from the online accommodation service Airbnb for suspected tax evasion.

The seizure was carried out by order of Milan prosecutors, who accuse the site of failing to collect tax on rental income from owners in the period 2017-2021.

According to a summary of the indictment signed by Milan prosecutor Marcello Viola and published by the financial police, Airbnb failed to collect the flat tax of 21% on all short-term rentals.

The company said it was "surprised and disappointed" by the seizure, saying it had been in "active discussions with the Italian tax agency since June 2023 to resolve this matter".

"We are confident that we have acted in full compliance with the law and intend to exercise our rights in this matter," she said in a statement to AFP.

Use of Airbnb has grown dramatically in recent years from the United States to around the world, with the service allowing users to find accommodation in a private home rather than a hotel.

The company said it has mounted a legal challenge to the law, which dates back to 2017, and which requires short-term rental platforms that process payments to withhold tax on the host's income.

The Court of Justice of the European Union (CJEU) ruled in 2022 that member states can require short-term rental platforms to collect income taxes.

But it also found that a requirement to appoint a tax representative, on which that law is based, was contrary to European Union law, Airbnb said.

The company also noted that in October 2023, an Italian court upheld the ECJ decision.

Airbnb criticized the "complexity and inherent uncertainty" of the law, but said it "continues to believe that it is not subject to it", following the ECJ ruling.


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