LONDON: British authorities hit Airbnb UK with an extra tax bill of 1.8 million pounds ($2.3 million) last year, the home rental company's accounts showed on Tuesday, following an investigation into the firm.
The UK arm of the San Francisco company, which also paid annual corporation tax of over 1 million pounds in Britain, said it had paid the extra obligations after a request from British tax authorities Her Majesty's Revenue and Customs (HMRC).
"During 2019, the Company received a revised assessment from HMRC which resulted in additional tax payable of 1.8 million pounds," Airbnb UK said in their accounts, which were reviewed by Reuters, after two years of contact with HMRC about its tax arrangements.
The US company's tax affairs have drawn closer scrutiny 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 travellers with landlords with rooms or entire properties to rent for short-term stays.
Outside of the extra tax bill for last year, the filings showed that Airbnb UK paid 1.1 million in tax on its profits in the year to Dec. 31 2019, compared to 146,000 pounds in 2018, though profits also rose sharply over the year to 5.6 million pounds from 455,000 pounds.
Comments
Comments are closed.