Airbnb defends corporation tax criticism
Airbnb has issued a statement to say it follows the rules and pays all taxes it owes amid criticism it has not paid enough corporation tax.
The accommodation site reportedly paid less than £200,000 in UK corporation tax last year, despite collecting £657 million in rental payments.
The commissions the company earns in the UK are booked by its Irish subsidiary, but it also has two UK subsidiaries.
One made a pre-tax profit, but the other resulted in a loss, according to the Sunday Times.
Airbnb Payments UK made a pre-tax profit of £960,000 and paid £188,000 in UK corporation tax, while Airbnb UK reported a £463,000 pre-tax profit last year but because it gave shares to staff, which are tax-deductable, there was no corporation tax bill.
Airbnb said: "We follow the rules and pay all the tax we owe.
"The overwhelming amount of money generated by the Airbnb platform stays with local hosts and their communities, and is subject to local tax."
Lisa
Lisa joined Travel Weekly nearly 25 years ago as technology reporter and then sailed around the world for a couple of years as cruise correspondent, before becoming deputy editor. Now freelance, Lisa writes for various print and web publications, edits Corporate Traveller’s client magazine, Gateway, and works on the acclaimed Remembering Wildlife series of photography books, which raise awareness of nature’s most at-risk species and helps to fund their protection.
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