Every time Ian Haines rents out his spare room in the Australian port city of Albany, Airbnb takes a 13 percent cut. Haines, who’s semi-retired, uses the extra money to supplement his income running a local farmers market. He says he’s careful to pay taxes on the Airbnb money, because the San Francisco company may report the transactions to the Australian government.
For Airbnb, things are different. Because it manages its finances via units in Ireland and tax havens like Jersey in the Channel Islands, only a small part of its share of the revenue is ever likely to be taxed by Australia or the U.S. A review of Airbnb’s overseas regulatory filings shows it has a far more extensive web of subsidiaries than it has publicly acknowledged—more than 40 in all.