Airbnb Inc.'s Irish unit agreed to pay the Italian tax authorities €576 million ($621 million) to settle allegations that it hadn't paid enough tax.
The San Francisco-based home-sharing company doesn't acknowledge "any liability" as part of the settlement, it said in a regulatory filing on Wednesday.
Italy's finance police had claimed that the company failed to pay taxes on about €3.7 billion of rental revenue and claimed that the company owed about €779 million after an audit of the tax years from 2017 to 2021.
Airbnb is still in discussions about its taxes for 2022 and 2023, and the amounts involved may be "material," the company said in a statement.
The settlement, while lower than the amount Italian authorities had initially pursued, is still equivalent to about a third of the company's quarterly
Authorities are ramping up scrutiny of how global companies operating in Italy pay tax. In 2019, Italian prosecutors probed Netflix Inc. after the U.S. streaming company failed to file a return, people familiar with the matter said at that time. Earlier this year, Milan prosecutors started investigating Facebook parent company Meta Platforms Inc. for alleged unpaid value-added taxes that totaled about €870 million, people familiar with the matter told Bloomberg last February.
A spokesman for Italy's tax agency declined to comment.
