Jul 27, 2015

Uber have confirmed they are fighting to avoid their ‘partners’ paying their fair share of tax to Australians.

Despite ride hailing (or ride sharing or sourcing) services being illegal in Victoria and other states in Australia, the ATO announced in May that ride hailing operations will be required to comply with federal tax laws, including register for GST and submit BAS statements.

“This is a company valued at $5 billion facilitating trips for profit on behalf of their 'partners' in Australia which they claim should be treated differently to other commercial passenger vehicle service providers. Taxi drivers are not afforded a turnover threshold but collect and pay GST from the first dollar through the fare box” said VTA CEO David Samuel.

“Claims about undue taxi industry influence are fanciful. The fact this company facilitates a network of small businesses operating outside Australian laws has presented significant challenges to regulators both at the State and Federal level” Mr Samuel explained.

Even Treasurer Joe Hockey has commented publicly about his concern that Uber drivers were not paying GST, fitting into a bigger picture of the offshoring of profits derived from business in Australia to avoid contributing what they owe to our economy.

Uber take 20% of every trip and questions remain as to whether or not they are compliant with Australia tax laws.

“The VTA calls on Uber to assure the people of Australia that they too will be paying their fair share of tax as a company.”

The Age and Business Insider published articles on the story over the weekend.