Airbnb’s 779.5 million euros seized in Italy
Vita Gazette – Italy has confiscated 779.5 million euros from Airbnb, which violated the laws and did not pay taxes, for “tax evasion”.
The Court of Milan has seized 779.5 million euros from Airbnb, the daily rental company, for tax evasion. The prosecutors: “The company has openly obstructed behaviour towards the Italian financial administration.”
The problems with Italy and Airbnb began in the early 2000s. The American short-term rental company is under investigation in Milan for failure to declare the “dry tax” on rental payments of 3.7 billion between 2017 and 2021. The investigating judge in Milan has ordered the seizure of 779 million euros from Airbnb as part of an investigation by the Milan Prosecutor’s Office and the GdF into the alleged tax evasion committed by the company between 2017 and 2021. In 2022, Airbnb will comply with Italian law requiring the company to withhold 21% of its rent hosts’ income and pay it to the tax authorities. He opposed it. The company argued that Italy’s tax conditions were contrary to the European Union’s principle of free provision of services in the 27-nation bloc. However, the EU’s highest court ruled that Airbnb must comply with Italian conditions. Three Irish managers are under investigation.
In recent years, Italian authorities have increased scrutiny of the tax practices of large companies such as Airbnb, which has operated in the country since 2008.
The ruling Forza Italia party said the country would introduce a national identification code for short-term rentals. Forza Italia leader and deputy prime minister Antonio Tajani said in his statement: “This law will reveal the incomes of those who rent apartments without declaring them.” Politicians estimate this new regulation could increase Italian tax revenues by 1 billion euros.