Airbnb Hit With Mammoth $835M Seizure In Italian Tax Evasion Crackdown

Italian finance authorities have reportedly seized an estimated $835 million from home-sharing platform, Airbnb Inc. ABNB, over allegations of tax evasion.

What Happened: Airbnb is accused of neglecting to pay 21% withholding taxes on revenues amounting to approximately €3.7 billion from rentals, according to Bloomberg. This substantial move was announced by prosecutors from the Milan Tribunal. Additionally, three former employees of the San Francisco-based firm, who served during the period in question, are currently under investigation.

This incident is not an isolated occurrence; instead, it is part of a broader examination of the tax practices employed by multinational corporations, undertaken by Italian and European authorities. Earlier this year, Milan prosecutors launched an inquiry into Meta Platforms Inc. META, the parent company of Facebook, concerning alleged non-payment of value-added taxes estimated at approximately €870 million.

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Airbnb’s Response: In response to the allegations, Airbnb expressed surprise and disappointment. Christopher Nulty, the company’s spokesperson, stated that they believe they have acted in full compliance with the law and intend to exercise their rights with respect to the issue, Bloomberg reported.

Airbnb also mentioned ongoing discussions between its European representatives and the Italian tax agency since June to address the matter.

Price action: Shares of Airbnb fell 3.6% on Monday, marking the worst session in over a month.

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