# Australia | Uber rejected ATO’s compromise deal in GST fight



## chi1cabby (May 28, 2014)

http://m.theaustralian.com.au/busin...k=1d55dc53c3314a86c9d3ecb4889a79bd-1445174658

*Senior tax office officials offered controversial ride-sharing network company Uber a compromise deal that would have exempted casual drivers for its low-cost UberX service from having to charge GST, ATO documents show.*

However, the proposal appears to have been rejected by Uber, with the US company instead making a flurry of counteroffers during last-ditch talks in May.

The documents, released to _The Australian _under Freedom of Information laws, reveal a ferocious lobbying effort by Uber that forced the ATO to delay its ruling on the issue. They reveal Uber was aware in December last year that the ATO intended to issue a ruling that UberX drivers were providing a taxi service and should charge GST on every fare.

The documents show Uber was so concerned about the ATO's decision its top-level international executives became directly involved in negotiations.

Uber's lobbying also forced the ATO to delay announcement of the ruling from the end of April to mid-May. The ATO revealed its compromise offer during a meeting on May 1 at Ernst & Young's Sydney office.

Uber general manager David Rohrsheim and director of public policy Brad Kitschke attended and its global head of tax, former Japan Tobacco executive Anthony Maggiore, and head of international finance Jesse Lucas were on a phone hook-up. Four Ernst & Young employees rounded out Uber's team.

"While there are a few from our side, this indicates the seriousness with which Uber is approaching this discussion," an EY tax partner, whose name was redacted, said in an email to ATO deputy commissioner James O'Halloran.

Mr O'Halloran, senior assistant commissioner Steve Howlin and assistant commissioner Jade Isaacs were present at the meeting. According to meeting notes kept by Ms Isaacs, the ATO said that if Uber accepted drivers were liable for GST, it would not chase drivers who tried out UberX but quickly gave it up.

"Such a solution would also mean the ATO was not registering and chasing up compliance on a large number of drivers who decide after a month the platform is not for them," the notes said. It said Uber would need to track drivers falling off the system and "demonstrate how they could assist/facilitate compliance by providing information to the ATO".

On May 11, Uber proposed a different deal under which it and the ATO would stay mum on whether drivers were liable for GST. "Uber believes this approach will allow maximum flexibility and benefits for both parties," EY said in a letter to the ATO. The rest of the proposal was redacted because it was provided to the ATO in confidence and a second proposal, sent four days later, was entirely redacted.

Mr O'Halloran rejected Uber's offers on May 18, describing them as "dependent, in essence, on the ATO not expressing a public view on ride sourcing".

"As we have discussed, this nondisclosure feature of any proposal is neither one which the ATO could agree to as it does not allow for transparency, nor one which assists the broader community to make decisions on their business and taxation arrangements, as there would be no certainty of the ATO view."

He said the ATO was happy to fight Uber in the Federal Court.

"However, we are not agreeable to further delaying the release of pubic advice for those engaged in providing taxi travel services through ride sourcing."

Uber launched a Federal Court challenge on July 31, the day before the ruling came into effect. A directions hearing in Sydney is set for December 15.


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## Michael - Cleveland (Jan 1, 2015)

So, in essence, Uber is perfectly willing to implement and collect what they call a 'Safe Rider Fee' to cover their own expenses, but wholly unwilling to simply add a % of the rider fare to each ride and pay those taxes directly to the taxing authority. 

No 'tip' for the driver who provides the vehicle and service - 
and 
No 'sales tax' for the government that provides the roads, infrastructure, traffic management and security.

That says an awful lot about the egotistical, self-centered and entitled corporate culture of Uber Technologies.


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## Instyle (Oct 18, 2014)

Truth comes out, I really hope the general public read and understand the child-like selfish behaviour that represents the Uber culture.

With Uber intentionally NOT telling any drivers of the GST requirement, I'll enjoy the ATO cracking down on gullible people and in turn those people turning against this morally corrupt symbol.


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