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Airbnb UK hit with extra $2.3 million tax bill

British tax authorities hit Airbnb UK with an extra tax bill of $2.3 million last year, a Reuters investigation into its accounts showed on Tuesday (September 29).

The San Francisco home rental company had paid annual corporation tax of over £1 million in Britain, but said it met the extra obligation after a request from the UK tax authorities.

In a statement, Airbnb said "We are committed to working in partnership with governments..."

The tax affairs of Airbnb have drawn close scrutiny, as it has become a digital economy leader and disrupted the hotel industry.

At the same time changing travel experiences for tens of thousands of holidaymakers around the world.

It operates by linking travelers with landlords with rooms or entire properties to rent for short-term stays - and has also faced pressure to make sure its users pay the proper taxes.

Outside of the extra bill for last year, the filings showed that Airbnb UK paid nearly £1.1 million in tax on its profits in 2019, compared to £146,000 a year earlier.

UK tax authorities have pledged to work in partnership with companies such as Airbnb to ensure the correct amount of tax is asked for and paid.