AIRBNB HOSTS FACE RETROSPECTIVE TAX BILLS
A former principal officer with Revenue says the legislation around renting out a room is not clear and needs clarification.
It comes as Irish people who rent their properties out under Airbnb face the prospect of retrospective tax bills dating back to the middle of last year.
It is because Revenue says these rentals do not qualify for the Rent a Room scheme – which allows for a certain level of income from rentals to be tax free.
Airbnb is meeting Irish hosts today to answer questions about the information it has handed over to the Revenue Commissioners.
Fiona O’Shea, former principal officer with Revenue, says the legislation is unclear and it may be open to challenges.
“What we’re looking at here is a sort of a Revenue view – the Revenue interpretation of the legislation and the way that way that the Revenue are administering the legislation, is to say that it will only apply to long-term accommodation where you rent out a room” she said.
“But, in fact, as I say the legislation does not necessarily say that and it would certainly be open to challenge” she added.