LI Network
Published on: November 11, 2023 at 00:20 IST
In a significant development, travel website Booking.com has reached an agreement to pay 94 million euros ($100.25 million) to settle a tax dispute in Italy, according to statements from Genoa prosecutors on Friday.
The investigation, initiated by prosecutors in the northwestern Italian port city in 2018, focused on Booking.com, headquartered in the Netherlands. The inquiry delved into the company’s tax handling related to properties rented through its website.
The Guardia di Finanza tax police in Italy alleged in June 2021 that Booking.com had evaded 153 million euros ($169 million) in value-added tax (VAT) connected to holiday rentals spanning from 2013 to 2019.
In a noteworthy development last November, Dutch magistrates accepted a European investigation order (OIE) from Italy. This order allowed Italian prosecutors to question two former Booking.com Chief Financial Officers (CFOs) as part of the ongoing investigation.
Subsequently, prosecutors in Genoa expanded their tax claims to include the year 2022. The resolution announced on Friday follows direct negotiations between Booking.com and the Italian revenue agency.
This settlement not only resolves the tax dispute but also highlights the ongoing efforts to address issues related to taxation in the digital economy.
