Summary List Placement
Airbnb is under examination by the Internal Revenue Service for 2013 and 2016, which could result in an added tax liability of $1.35 billion, plus penalties and interest, the company cautioned in the IPO paperwork it revealed on Monday.
According to the company, that amount is more than $1 billion more than the company has set aside for tax liabilities. The filing shows that the company had a little more than $177 million set aside in “indirect tax reserves” as of the end of September of this year.
The IPO filing notes that the 2013 tax bill is the fallout “relating to the valuation of our international intellectual property.” The filing doesn’t clarify which subsidiary the dispute is relating to.
Per the filing, Airbnb has an international subsidiary named Airbnb International Holdings Limited and is based in Jersey, an island in the English Channel that has a reputation of being a tax haven. According to Jersey’s Companies Registry, Airbnb International Holdings Limited was formed in November of 2013.
The company also announced it was opening its European headquarters in Dublin, Ireland in 2013 and founded an Irish subsidiary Airbnb International Unlimited Company in October of 2013. Ireland has low corporate tax rates, …read more
Source:: Businessinsider – Finance