Could We Lose AirBnB to Tax Policy Controversies?

Latest news reports the company running AirBnB is experiencing some tax policy controversies in the nine years it had been in service. However, there seems to be some indication that the latest tax investigation on AirBnB's contributions in the UK may cause the company to slow down.

According to a report by Forbes, there is clear evidence to question how much taxes the company should pay. Tax records in the UK show that the company has paid a total of around 13,000 UK Pounds despite earning millions through 2016. However, the company has reiterated very strongly that they have been following the rules set by the government regarding taxes.

Since the company is owned by a US-based company, it is only right that majority of the taxes are paid locally. AirBnB owners have indicated that even though the sale has been made on international soil, fees are to be paid but the taxes should not purely go to the local government.

Popular to many travelers all over the world, AirBnB has serviced more than 191 nations globally. It has provided homes to backpackers, solo travelers, families and all other forms of travelers who would rather stay in a homey place than in an expensive hotel. The app offers budget lodging and very affordable accommodation, by also giving local residents a means of earning and contributing to their city's tourism.

As the app functions in more than a hundred nations all over the globe, numerous tax problems are common in the nine years they have been in service. Fortune discusses that just this year, AirBnB has agreed to collect hotel-level taxes to its patrons.

Most usually, travelers pay the app through credit card or PayPal. The payment will be divided into two: the owner's rent share and the company's profits. However, as AirBnB almost functions as a hotel to travelers, it might only be right to let local governments benefit economically from their profits. Thus, travelers and the AirBnB app are also supposed to pay fees locally.