# Uber's tax avoidance strategy costs governments millions.



## AMBUDRIVER03 (Jul 1, 2014)

http://48hillsonline.org/2014/07/10/ubers-tax-avoidance-strategy-costs-government-millions/



> Uber's operations in the United Kingdom are a case in point. Uber's U.K. subsidiary, called Uber London Limited, was established in April, 2012 to facilitate the company's expansion into London's massive transit market. Records held by the Registrar of Companies for England and Wales show that Uber London is owned by a Netherlands private partnership called Uber International Holdings B.V. This Netherlands holding company is in turn owned by another Netherlands company, Uber International B.V.
> 
> The Netherlands is considered by the Organization for Economic Cooperation and Development to be a tax haven because its laws purposefully assist multinational corporations in offshoring profits from other nations. Netherlands holding companies and pass-through companies like those set up by Uber play a major role in the tax avoidance tactics used by large multinationals.
> 
> ...


Sneaky Bastards... I like it.


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## London UberExec Driver (Jul 8, 2014)

Interesting what the black taxis say about London Uber drivers. All Uber drivers in London have to be a licensed private hire driver and have to submit up to date documents proving so before they can be accepted onto the system. 

All have an enhanced criminal record check and each vehicle they drive must have insurance in place to cover the hire and reward of passengers. 

Also passengers I've taken like Uber simply because they can pay by card which is simple and don't have to repeat the card details each time as its already stored. 

Most black taxis don't take card payments for obvious reasons and if they do, they often add a surcharge of 10%. 

Those that don't take card payments, and the passenger is short of cash, the passenger often has to ask the taxi driver to stop at a cash machine while the meter is still running, then when it's time to pay, the driver then sometimes claims not to have change.

With Ubers cashless system, everything is transparent and simple. As uber payments are made into drivers' bank account, it's easy to find out how much tax is to be paid. With cash-only accepting black taxi drivers, it's harder.


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## Sydney Uber (Apr 15, 2014)

Here in Sydney and I guess Australia, the customer receipts they email aren't even Tax compliant. No GST listed.


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## London UberExec Driver (Jul 8, 2014)

Maybe some drivers don't have to pay it because they don't earn enough to be over the threshold? 

Here some drivers are VAT (Value Added Tax - 20%) registered. If they are there it's shown on the receipt. You have to be VAT registered if you're takings are above around £80,000 a year (you can also be voluntarily registered if below that).


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## Sydney Uber (Apr 15, 2014)

London UberExec Driver said:


> Maybe some drivers don't have to pay it because they don't earn enough to be over the threshold?
> 
> Here some drivers are VAT (Value Added Tax - 20%) registered. If they are there it's shown on the receipt. You have to be VAT registered if you're takings are above around £80,000 a year (you can also be voluntarily registered if below that).


All services are hit with the Goods & Services Tax here, if you earn less than 50k you don't need to be registered, but that means you can't claim it back on your legitimate business purchases. All riders pay the GST on their trips, and this needs to be passed on to the Tax Office. My accountant can't believe that UBER can get away without providing GST breakdown on receipts and not withholding it and passing it on to the ATO. A lot of drivers assume this and may get a big shock in the future if audited .


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## LAuberX (Jun 3, 2014)

In California "services" like doctors, plumbers and mechanics are not taxed, only the hard parts they install are.

Taxing services is the next great American tax grab... Politicians hate to see all that money pass by their coffers unscathed....


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## mp775 (Jun 26, 2014)

Rhode Island recently passed sales tax on certain services, including "taxicab, limousine, charter bus, and other ground passenger transportation services." 7 percent gets added to the fare and is collected by Uber.


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## London UberExec Driver (Jul 8, 2014)

Interesting, same here. Though you can offset business related expenses from your personal income tax.

All riders pay the same amount here regardless whether the driver is VAT registered. If the driver is, then on the trip breakdown, then VAT is separate.


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