Kenny contacted Noonan over Airbnb tax reform

Taoiseach spoke for constituent who wants changes to taxing of income from website

Michael Noonan’s reply to Enda Kenny regarding a constituent’s Airbnb concerns was not revealed. Photograph: Brenda Fitzsimons
Michael Noonan’s reply to Enda Kenny regarding a constituent’s Airbnb concerns was not revealed. Photograph: Brenda Fitzsimons

Taoiseach Enda Kenny and senior Ministers have made representations to Minister for Finance Michael Noonan on behalf of constituents who wanted the tax treatment of Airbnb income changed, Freedom of Information records show.

Controversy erupted in the summer when the holiday accommodation rental site told users it had given the Revenue Commissioners details of their income from the service.

Mr Kenny had emailed Mr Noonan in March with a correspondent’s suggestions for changing the tax treatment of occasional guest accommodation so it would be brought into line with the rent-a-room scheme, introduced in 2002.

Under this scheme, a person who rents out rooms in their home can earn up to €12,000 a year tax free.

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“I would be grateful if you could arrange to have the points raised in respect of the tax treatment proposals examined and if you could advise me on the matter,” Mr Kenny said.

Mr Noonan told the Dáil in early July he had no plans to extend the rent-a-room scheme to include guest accommodation lettings under Airbnb.

Minister for Jobs Richard Bruton contacted Mr Noonan in August on behalf of a constituent in negative equity who wanted to know if they could benefit from the tax exemption when letting a room via Airbnb.

The constituent wanted to know “whether owners who are using Airbnb to supplement their resources in order to pay large mortgages on negative equity properties, can avail of the tax exemption under rent a room schemes”.

Minister’s letter

Minister for Communications Alex White wrote to Mr Noonan in June about a constituent who was using the Airbnb website a number of times a year to let out a room in her family home.

“She has expressed concern that income from Airbnb is excluded from the Rent a Room relief,” Mr White said.

He asked Mr Noonan to “clarify whether there will be any future extension of the scheme to include the provision of accommodation to occasional visitors for short periods including accommodation provided through online booking sites”.

Mr White wrote to Mr Noonan again last month seeking his observations as soon as possible.

He had received more correspondence from the constituent after media commentary, “which suggests that Airbnb are now in regular communication with Revenue”.

Mr Noonan’s response to Mr White and Mr Bruton was that Airbnb visitors used the accommodation referred to as guest accommodation rather than residential purposes.

His response to Mr Kenny was not revealed and several documents were heavily redacted.

Mary Minihan

Mary Minihan

Mary Minihan is Features Editor of The Irish Times