Italian judge seizes €780mil from Airbnb in tax probe

Italian judge seizes €780mil from Airbnb in tax probe

The probe concerns Airbnb's alleged failure to pay Italian tax authorities.

Airbnb had unsuccessfully challenged the 2017 law cited by prosecutors. (AFP pic)
ROME:
An Italian judge has ordered the seizure of €779.5 million ($836.40 million) from short-term rentals platform Airbnb’s Ireland unit for alleged tax evasion, Milan prosecutors’ office said on Monday.

The probe concerns Airbnb’s alleged failure to withold 21% of landlords’ rental income and pay it to Italian tax authorities, as required by a 2017 law, prosecutors in the northern Italian city said in a statement.

Three people who held managerial roles between 2017 and 2021, the period covering the alleged violation, are under investigation and are jointly targeted by the money seizure order, the statement added.

Airbnb’s Italian press office did not immediately reply to a request for comment.

The company had unsuccessfully challenged the 2017 law cited by prosecutors in a legal battle that ended in December with the EU Court of Justice ruling in the Italian government’s favour.

Prime Minister Giorgia Meloni’s administration is meanwhile planning a crackdown on tax cheating on short-term rentals, and wants to raise taxes from 21% to 26% for owners of multiple short-term rental properties.

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