Uber resolves tax issue in Canada
Published: June 26, 2019
Updated: June 30, 2019
Author: Luke Jones
Uber has confirmed it has reached a resolution over an “administrative issue” with the Canada Revenue Agency. The ride-sharing giant had previously argued its Uber Canada subsidiary did not need to show sales tax on rides.
A document filed with the Tax Court of Canada shows Uber Canada Inc. and the federal government agreed with a judgement “on a without costs basis”. This decision allows Uber to appeal the last quarter of 2012 and the first half of 2013. All tax and penalties that the company was reassessed for will now be removed.
Uber appealed to the Tax Court of Canada last December over reassessments the Canada Revenue Agency started in December 2014.
“The CRA’s assumption underlying the Reassessments is that UCI (Uber Canada) was responsible to account for GST/HST on the supplies of transportation services to riders,” the notice of appeal said. “However, UCI did not supply transportation services to riders during the Reporting Periods, or at any other time. At all time (sic), only the driver-partners supplied the transportation services to the riders, not UCI.”
Uber said it will provide “marketing and support services” and says it charged, collected, and remitted sales taxes accurately.
“This was an administrative issue and we are pleased to have come to a resolution with the CRA,” an Uber spokesperson said.