UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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| Item 8.01. | Other Events. |
As previously disclosed, Italy passed a law in 2017 requiring short-term rental platforms that process payments to withhold Host income tax and collect and remit tourist tax, among other obligations (“2017 Law”). Airbnb, Inc. (the “Company”) has challenged this law before the Italian courts and the Court of Justice of the European Union (“CJEU”). In December 2022, the CJEU found that European law does not prohibit member states from passing legislation requiring short-term rental platforms to withhold income taxes from their hosts, but determined that the requirement to appoint a tax representative, on which the 2017 Law and the withholding obligations are based, is contrary to European Union law. In October 2023, the Italian national court upheld the ruling of the CJEU. The Company’s subsidiary in Italy and subsidiary in Ireland are subject to tax audits in Italy, including in relation to transfer pricing and withholding obligations.
Also as previously disclosed, in May 2023, the Guardia di Finanza de Milano issued a Tax Audit Report recommending to the Italian tax authorities a formal tax assessment of 779 million Euros on Airbnb’s Irish subsidiary (“Airbnb Ireland”) relating to the 2017 Law and associated withholding tax obligations. The matter was referred to the public prosecutors’ office, which is typical once the Tax Authority issues its audit report and assessment.
On November 6, 2023, at the behest of the public prosecutor, Italian police presented the Company with a court order purportedly authorizing them to seize the 779 million Euro assessment from Airbnb Ireland.
Airbnb Ireland has been in active discussions with the Italian tax agency since June 2023 to resolve this matter. The Company believes that it and its subsidiaries have acted in full compliance with the law and intends to exercise its rights with respect to this issue. The Company also continues to believe that it is not subject to the 2017 Law based on the CJEU and Italian court rulings. Due to the inherent complexity and uncertainty of the 2017 Law, the Company is unable to determine an estimate of the possible loss or range of loss in this matter, but such amounts could be material.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AIRBNB, INC. | ||||||
| Date: November 7, 2023 | By: | /s/ David E. Stephenson | ||||
| David E. Stephenson Chief Financial Officer | ||||||