Monday, October 09, 2017

The Tax Fiddlers

Airbnb, the accommodation website, paid less than £200,000 in UK corporation tax last year despite collecting £657m of rental payments for property owners.
The commissions the company earns in the UK are booked by its Irish subsidiary, but it also has two UK subsidiaries. One unit made a pre-tax profit, but the other did not incur UK corporation tax because deductions resulted in a loss.
Airbnb Payments UK, handles payments between landlords and travellers for countries other than the United States, China and India. That unit made a pre-tax profit of £960,000 and paid £188,000 in UK corporation tax - £8,000 less than in 2015.
The other British subsidiary, Airbnb UK, markets the website and app to British consumers. It 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.
Bruno Le Maire, the French finance minister, has also asked why Airbnb paid tens of thousand of euros in French corporation tax despite a turnover in the millions.

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