Airbnb provides a platform for people to rent out to tourists various accommodations, such as apartments, cottages, and more. Data from the site was obtained by the Director of Tax Investigations and has led to suspicions of large-scale tax violations by Icelanders. The violations could lead to significant fines or prison sentences, depending on the severity of the infraction.
Undisclosed payments by Icelanders
Fréttablaðið reports on the matter, explaining that the fine or sentencing depends on the amount derived from Airbnb revenue that was not disclosed on tax returns by suspected Icelanders. In some cases, the amounts that went undisclosed could amount to tens of millions of ISK.
Fines and sentencing on the horizon
The Director of Tax Investigations has been working since last year to analyze payments totaling 25.1 billion ISK to Icelandic taxpayers from Airbnb from the years 2015 to 2018. The appointed director of tax investigations, Theodóra Emilsdóttir, asserted that some violations are developing to be large-scale in their offense.
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