Criminal tax law: Are Airbnb hosts in a tight spot?
Under the new Hamburg Housing Protection Act (HmbWoSchG) rentals are advertised on websites such as Airbnb or Wimdu more difficult for private landlords in Hamburg. Similar laws are already in place in Munich and Berlin, amongst other places.
However, from a tax law perspective too, the so-called Misuse of residential property This is interesting, as some private landlords have not yet declared the income they have earned from letting to the tax authorities. The tax authorities can request information from other authorities through administrative assistance, for example from local government bodies.
In a recent ruling handed down in Munich, the Munich Administrative Court (Ref. M 9 K18.4553) upheld the claim brought by the City of Munich against Airbnb Ireland UC for the disclosure of information.
As a result, we can now expect an increase in requests for administrative assistance from the tax authorities, which will lead to previously undeclared income from letting being uncovered and to the Initiation of criminal tax proceedings This is likely to be the case, as seen in recent instances involving the Wimdu online portal in Berlin.
To avoid criminal proceedings, there is the option of voluntary disclosure leading to immunity from prosecution, bearing in mind that, once the portals have disclosed the information, it would no longer be possible to detect the offence. It is therefore essential to act swiftly in such cases so as not to forfeit the opportunity to make a voluntary disclosure that would exempt one from criminal liability.
For further information and enquiries, please contact our Specialist solicitors and tax advisers I’d be happy to help.