That seems like a question, but if you have been on the web and if you have been on YouTube you will have seen a AirBNB advertisement. I personally do not trust them. That is nothing against them, I for the most do not trust anyone. If my mother would call me promising me a solution that gets me 1000% return on investment, I would not trust her (she dies decades ago).
The BBC (at https://www.bbc.co.uk/news/business-67341051) gives us ‘Italy to seize $835m from Airbnb in tax evasion inquiry’, it sounds simple and cozy. Yet I believe the all over setting is less simple. We see this with “Prosecutors say the firm failed to collect a tax from landlords on around €3.7bn of rental income. Landlords in Italy are required to pay a 21% tax on their earnings” and here lies the rub. Italian tax laws are not simple, but a lot less complicated than some and this was there in all the writings upfront. AirBNB might be “surprised and disappointed at the action announced by the Italian public prosecutor” but this was a simple application of Italian law. And the statement “Christopher Nutly said the firm’s European headquarters had been working to resolve the matter with the Italian tax agency since June” Really? June? It took me 11 minutes to see that part of the law and AirBNB was in the dark for months? As such “In 2022, Airbnb challenged the Italian law requiring the company and other short-term rental providers to withhold 21% of the rental income from landlords and pay it to tax authorities” Really? A firm goes up against Italian tax laws? How quaint.
So when I see “The firm argued that Italy’s requirements on taxation contravened the European Union’s principle of freedom to provide services across the 27-country bloc” I wonder how their CLO (Chief Legal Officer) saw this? They checked with the local hookers on the Warmoestraat in Amsterdam perhaps? I am just fishing, but still. And the fact that they took this approach after YEARS leaves something to be desired as well. The fact that we are also given “Three people who held managerial roles at Airbnb from 2017 to 2021 were also under investigation, Milan Tribunal prosecutors said in a statement” gives me another path a simplified and optionally an incorrect one. You see, this is an issue that has lasted for 6 years, the simpleton I would have looked at legal settings before day one commenced, but that is just me.
Elizabeth Holmes, Sam Bankman-Fired, WeWork and the list goes on. Some ignored the law, some ‘overlooked’ and some merely made bad business calls and the media saw nothing until their stars exploded or imploded. How is that? A setting where we see €3.7bn of rental income and the Italian media never saw that post missing from the tax statutes? I am asking the questions out loud now, because the media isn’t. With Elizabeth Holmes, the media shunned Tyler Shultz. The media levitated Sam Bankman-Fried to godhood and no one looked where they needed to look for the longest of times. The €3,700,000,000 income in Italy makes that almost clear as day. You see that revenue exceeds the combined sums of Enel, Eni and Generali over 6 years and they are the top revenue firms in Italy and no one noticed? Who is asleep at the wheel there?
Just some food for thought, enjoy it as you progress to the middle of the week.
Lawrence van Rijn - Law Lord to be 