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Airbnb has been ordered to pay $US835 million ($1.3 billion AUD) after it failed to pay Italy’s mandatory 21 per cent withholding tax it charges landlords, according to Milan Tribunal prosecutors.
The Victorian government has “missed the mark” with its new property tax which targets Airbnb and holiday homes, says Airbnb Australia Head of Policy Michael Crosby.
Mr Crosby’s comments come after Victorian Treasurer Tim Pallas announced the new tax, much to the surprise of his own party and even his new Premier Jacinta Allan.
“Airbnb has always supported the idea of a sustainable visitor levy,” he told Sky News Business Editor Ross Greenwood.
“But we’ve always said that needs to be at a fairly broad rate, at about five per cent or less.
“On top of that, we think the fact that this is just a short-term rental levy is a mistake – it should be a broader base to actually make it fair.”
Airbnb refused to cough up Italy’s mandatory 21% withholding tax it charges landlords as part of an alleged four-year tax evasion scheme from 2017 to 2021, according to a statement Monday from Milan Tribunal prosecutors.
The tax, which was mandated in 2017, means Airbnb is on the hook for paying the Italian government roughly $840 million.
An Airbnb spokesperson told The Post that the San Francisco-based company is “surprised and disappointed at the action announced by the Italian public prosecutor.”
Police have released CCTV vision of separate robberies at the Gowrie Road Hotel that are believed to be perpetrated by the same man.
“Airbnb Ireland has been in active discussions with the Italian tax agency since June 2023 to resolve this matter,” the spokesperson added, noting that the company is “confident that we have acted in full compliance with the law.”
Prosecutors Giovanni Polizzi, Cristiana Roveda and Giancarla Serafini told Italian daily newspaper Corriere della Serra that Airbnb “for years now” has been “fully aware of the declaration and contribution obligations introduced by the Italian legislator since 2017,” but “has taken the deliberate corporate option of not complying with them.”
The trio of prosecutors argued that Airbnb deliberately skirted the tax “with the main purpose of not risking the loss of market shares in favor of competition.”
Airbnb has been ordered to pay $US835 million ($1.3 billion AUD) after it failed to pay Italy’s mandatory 21 per cent withholding tax it charges landlords, according to Milan Tribunal prosecutors. Picture: iStock
The Post has sought comment from the Milan Police Department.
Italian regulators have trained their sights on Airbnb, which has been criticized for contributing to a shortage of affordable housing for residents in some of the world’s most popular tourist destinations, prompting some cities to tighten regulations.
Last week, the government announced plans to crackdown on landlords who do not pay taxes on short-term flat rentals such as those made through platforms like Airbnb — a move that could boost fiscal revenue by $1.06 billion.
With Post Wires
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