Illegal ride sharing on notice on tax compliance
May 20 2015
The Victorian Taxi Association (VTA) applauds the announcement today from the Australian Taxation Office (ATO) that illegal ride sharing operations will be required to comply with federal tax laws, including register for GST and submit BAS statements.
The fact that all ride sharing providers will be required to register for GST regardless of their turnover in accordance with tax regulation of the taxi and hire car industries acknowledges that they provide a comparable service to taxis and are actively competing with legitimate small businesses throughout Australia.
This move is an important step towards equality under the law for taxi and hire car operators at a time when illegal ride sharing services continue to operate across the country.
“It is good to see a regulator take a firm position on this issue and not get caught up in the rhetoric and PR buzz” said David Samuel, VTA CEO.
The announcement that the ATO ‘has classed all ride-sourcing services as taxi travel’ is another significant move to formally recognise the true nature of these services.