TAX MAN ASKED TO INVESTIGATE UBER

Jul 22, 2015

By Andy Johnson

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In the latest blast in the fight against Uber, Toronto Councillor and taxi industry supporter Jim Karygiannis, has asked the Canada Revenue Agency to investigate whether the company is paying all appropriate taxes. Karygiannis says he’s seen plenty of Uber passenger receipts and the fare breakdowns do not include an HST charge or registration number.

File illustration picture showing the logo of car-sharing service app Uber on a smartphone next to the picture of an official German taxi sign in Frankfurt, September 15, 2014. A Frankfurt court earlier this month instituted a temporary injunction against Uber from offering car-sharing services across Germany. San Francisco-based Uber, which allows users to summon taxi-like services on their smartphones, offers two main services, Uber, its classic low-cost, limousine pick-up service, and Uberpop, a newer ride-sharing service, which connects private drivers to passengers - an established practice in Germany that nonetheless operates in a legal grey area of rules governing commercial transportation.    REUTERS/Kai Pfaffenbach/Files  (GERMANY - Tags: BUSINESS EMPLOYMENT CRIME LAW TRANSPORT)

Uber says there is in fact HST charged on rides, but it is up to the drivers to collect and remit the tax and as a registered Canadian business, Uber Canada plays all applicable taxes.  The C.R.A. is not responding to questions about Uber.  An agency spokesperson says, where fares are regulated, self employed cab drivers must be registered for both GST/HST purposes and add the 13 per cent tax to their fares.  But, where fares are not regulated, drivers are only required to register, charge and remit the GST/HST if their annual taxable incomes exceed $30,000.

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