Britain hits Airbnb UK with extra $2.3 million tax bill after probe
British authorities hit Airbnb UK with an additional tax bill of 1.8 million pounds ($2.3 million) last year.
The house rental startup’s accounts showed on Tuesday, following an investigation into the firm.
UK arm of Airbnb said it had paid the extra obligations after a request from British tax authorities.
The UK arm of the San Francisco company, which also paid annual corporation tax of over 1 million pounds, said;
It had paid the additional obligations after a request from British tax authorities Her Majesty’s Revenue and Customs (HMRC).
Airbnb’s Stance
Airbnb UK said in their accounts;
“During 2019, the company received a revised assessment from HMRC which resulted in additional tax payable of 1.8 million pounds.”
Which were reviewed by Reuters, after two years of contact with HMRC about its tax arrangements.
The company also said that it might share earnings data from its UK hosts with local tax authorities going back to 2017.
Airbnb has faced pressure from governments and regulators around the world to make sure that the users of its platforms;
Private individuals who offer their homes as short-term should pay the appropriate taxes.
The company said in 2018 that it had been contacted by HMRC about its tax arrangements.
The US company’s tax affairs have drawn in-depth observation globally.
As it has grown into one of the marquee names of the digital economy.
With a business that has disrupted the hotel industry by linking travelers with landlords or entire properties to rent for short-term stays.
Outside of the additional tax bill for last year, the filings showed that Airbnb UK paid 1.1 million in tax on its profits within the year to Dec 31, 2019.
As compared to 146,000 pounds in 2018, though profits also rose sharply over the year to five.6 million pounds from 455,000 pounds.
Airbnb said during a statement;
“We are committed to working in partnership with governments… and we will continue to work collaboratively with HMRC.”
