Italian authorities have ordered the seizure of more than 779 million euros (more than 1.1 billion Canadian dollars) from the rental platform Airbnb as part of a tax evasion investigation, financial police said Monday.
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Milan prosecutors accuse Airbnb of failing to collect tax on rental income earned by owners between 2017 and 2021, which must be paid to the Italian tax authorities, according to the same source.
Airbnb said it was “surprised and disappointed” by the seizure and said it has been “in active discussions with the Italian tax authorities since June 2023 to resolve this matter.”
“We believe we have acted in accordance with the law and intend to enforce our rights,” the platform said in a press release sent to AFP.
The group said it had challenged in court the 2017 Italian law that requires the platform to charge a 21% tax on income from short-term rentals.
In its press release, the group once again criticizes a law that it says brings with it “complexity and uncertainty” and ensures that it “continues to believe” that it does not apply to it.
At the end of October, the Italian government confirmed its intention to step up the fight against tax-free short-term rentals and increase taxation on owners who offer more than one apartment on platforms such as Airbnb.
An amendment to the 2024 draft budget envisages the creation of a “national identification code” for tourist accommodation, which will make it possible to trace those who have not been reported to the tax authorities, said Council Vice President Antonio Tajani, following a summit of the ruling coalition.
“This will create transparency and regulate the entire system,” he argued, adding that this budget measure will “also increase state revenue” and help “reduce the burden tax” on families.
As for the planned increase in the tax rate, “it will only be applied from the second rented apartment of each owner, so it is not suitable for everyone,” he assured.
Owners of short-term rental apartments can currently opt for a flat rate of 21%. For other apartments rented for a period of less than 30 days, this rate increases to 26%.