Ireland’s tax authorities have forced Airbnb to disclose Irish customer details to see if tax is being paid by property owners on their rental earnings.
An Airbnb spokesman told the Daily Mail: "We have informed hosts about the legal requirement for Airbnb Ireland to report host earnings to the Office of the Revenue Commissioners. This is a legal requirement for Airbnb Ireland - similar to our obligation to report host earnings in the US."
While Airbnb says it will not share details of its British customers with HMRC, it may have no choice. Tax experts say that HMRC has the power to force any company to provide income details if it thinks full tax is not being disclosed.
The British tax authorities are enabled by law under ‘section 36’ provision to demand third parties give data in cases where it is suspected that tax is being underpaid.
As it can demand information from the likes of Amazon and eBay, it is likely to be able to do the same from Airbnb. Moreover, there are reciprocal agreements with the US and the Republic of Ireland.
Currently, UK taxpaying owners may earn up to £4,250 a year tax-free from letting out furnished accommodation in their homes. After that amount, tax must be paid.
