Airbnb hosts must provide "absolute clarity" on any earnings to the Revenue Commissioners, Minister for Tourism Paschal Donohoe has said.

He was commenting after the peer-to-peer holiday rental site contacted users telling them it had supplied Revenue with details of income generated by users in the Republic going back to May 1st, 2014.

“I welcome the fact that Airbnb have made very clear that they absolutely expect anybody who is working with them to be tax compliant and they have emphasised the need for any income that might be coming out of Airbnb to be declared to the Revenue Commissioners,” Mr Donohoe said.

He insisted the development was not damaging for anyone involved, saying both the company and Revenue were providing clarity on what was required.

“I believe companies like Airbnb are going to be an even bigger part of how Ireland gets more tourists into our country but also provides new forms of accommodation for a certain kind of independent traveller,” Mr Donohoe said.

“With that kind of growth potential in mind I do believe it’s very important that any matters in relation to tax liability are clearly dealt with.

“To my mind anybody who is working with Airbnb must provide absolute clarity regarding the kind of income they’re deriving from working with Airbnb.

“I think it’s very important that all of these matters are transparently dealt with, that clarity and certainty is brought to them.” He said he wanted to see more people using this kind of service in future so that more tourists would visit Ireland.

“It’s important because we need to ensure there’s a level playing field between the type of accommodation Airbnb provide versus other forms of accommodation that are available to tourists who come to our country.”

Mr Donohoe was speaking on Tuesday at an event to mark the launch of 90 new buses at Dublin Bus central control in Broadstone.