While the European Commission accuses Ireland of individual tax breaks, the UK supports Airbnb

Recently, the European Commission appealed to the tax authorities of Ireland in order to obtain additional data on Apple's operations in the country. The request was the result of Apple's investigation into tax fraud in Europe - allegedly, the company received special conditions and subsidies from the Irish government for tax evasion.

“Ireland did not provide full information on the latest request from the Apple Commission. As a result, she sent a second request for the issuance of the necessary documents, ”a representative of the European Commission told the news agency Bloomberg.

After the publication of the commentary by the representative of the European Commission, the Irish Ministry of Finance made a statement, which stated that there were no violations and the collection of the relevant percentage of taxes under current legislation.
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“We paid every cent of the tax that should be paid in Ireland. We do not believe that the interests of the government were somehow involved in this matter and we are waiting for the result to confirm this. The Irish government agrees with this, ”said Katie Kerry, vice president of Europe for Apple Europe.

But while Apple is actively pursuing possible tax evasion in Europe with the help of the Irish government, other startups are getting new benefits. George Osborne, Chancellor of the British Treasury, announced plans to introduce tax incentives for entrepreneurs who donate property through Airbnb. With an income of less than £ 1,000 a year, users of the service who donate the property will not have to declare income and pay any fees. It is noteworthy that the sellers of any services through the network for the same amount will be able to do without the declaration of income.

Tax breaks will be active from April 2017, and the estimated amount of such transactions for the year will allow UK entrepreneurs to save about £ 235 million per year.

“We are going to help micro-entrepreneurs who sell services through the Internet or rent property through Internet services.

Our tax system will help such entrepreneurs not to declare £ 1,000 from the income from the sale of services or rental of real estate per year. There will be no form to fill out and no need to pay anything. More than half a million people will be able to get the potential benefits of these benefits, ” said Chancellor George Osborne.

Airbnb has responded positively by posting an official blog response:

“The UK has become a world leader, introducing new rules for the development of innovation, technology and co-consumption. We are pleased with the government for supporting the business model throughout the country, their example is important throughout the whole world. ”

Despite the lack of tax breaks directly for Airbnb, as is the case with Ireland and Apple, the UK deliberately supports one of the world's largest rental housing startups. But this time, tax breaks are aimed at improving the quality of life of people in the country, rather than increasing the revenue of a particular country.