The Milan prosecutors’ office announced on Monday that an Italian judge had ordered the seizure of 779.5 million euros, or $836.40 million, from the European headquarters of the short-term rental website Airbnb, which is located in Ireland, due to suspected tax evasion.

Prosecutors in the northern Italian city stated in a statement that the investigation is into Airbnb’s purported failure to withhold 21% of landlords’ rental income and pay it to Italian tax authorities as mandated by a 2017 law.

The announcement further stated that three individuals who held managerial positions between 2017 and 2021—the time frame for the purported violation—are being investigated and are jointly the subject of the money seizure order.

“Airbnb Ireland has been in active discussions with the Italian tax agency since June 2023 to resolve this matter,” a spokesperson for Airbnb told Reuters.

The representative went on to say that the company was “surprised and disappointed” by the ruling and that it had behaved in accordance with the law.

In a failed legal battle that culminated in the EU Court of Justice finding in favour of the Italian government in December, the corporation had contested the 2017 statute that had been cited by prosecutors.

The administration of Prime Minister Giorgia Meloni intends to increase taxes on short-term rentals from 21% to 26% and is launching a campaign against tax evasion.

(Adapted from Nasdaq.com)