Patcay.com – An Italian judge has issued an order to confiscate €779.5 million ($835.5 million; £676.8 million) from the short-term rental behemoth Airbnb, on grounds of alleged tax evasion.
Prosecutors contend that the company failed to collect taxes from landlords on approximately €3.7 billion in rental income.
Under Italian law, landlords are obligated to pay a 21% tax on their rental earnings.
Read more : Keeping Gadgets Safe from Data Leaks
Airbnb expressed its surprise and disappointment at the measures announced by the Italian public prosecutor, as communicated to the BBC.
Airbnb spokesperson Christopher Nutly mentioned that the company’s European headquarters has been engaged in addressing this matter with the Italian tax agency since June.
Mr. Nutly further stated, “We firmly believe that we have adhered to all legal requirements and are determined to exercise our rights regarding this issue.”
Read more : Mobile Camera: Maximizing How to Use It
Additionally, Milan Tribunal prosecutors disclosed that three individuals who held managerial positions at Airbnb between 2017 and 2021 were also subjects of investigation.
In 2022, Airbnb contested an Italian law that mandated the company and other short-term rental providers to withhold 21% of rental income from landlords and remit it to tax authorities. Airbnb argued that Italy’s taxation requirements were in conflict with the European Union’s principle of the freedom to provide services across the 27-country bloc.
Subsequently, the EU’s highest court ruled that Airbnb must comply with these requirements.
In recent years, Italian authorities have intensified their scrutiny of the tax practices of prominent corporations such as Airbnb, which has been in operation in the country since 2008.
Read more : Laptop battery: to make the battery last longer
Media reports suggest that Italian prosecutors have initiated tax-related investigations against Netflix and Meta.
Last month, Italian politicians announced plans to crack down on landlords who evade taxes on short-term rentals facilitated by platforms like Airbnb.
The co-ruling Forza Italia party revealed intentions to establish a national identification code for short-term rentals.
Forza Italia’s leader and Deputy Prime Minister, Antonio Tajani, stated, “This code will bring transparency to the income of those who rent properties without declaring them.”
It is estimated by politicians that this move could potentially increase Italy’s fiscal revenue by €1 billion.