Wednesday, July 13, 2016

Uber: tax cheats

Want another reason not to use Uber? In addition to the evasion of transport regulations designed to keep passengers safe, they're also tax cheats:

Internet transport firm Uber used controversial and complicated international tax structures to reduce its New Zealand tax bill to around that of an average Kiwi worker, records show.

Through a structure known as "Double Dutch" accounting, the online transport network channels revenue to subsidiaries in the Netherlands that hold earnings and minimise its worldwide tax bills.

According to financial accounts filed with the New Zealand Companies office, Uber declared gross revenues of $1,061,018 in New Zealand in 2014 but paid just $9397 in income tax. Someone on the average wage of $45,000 is taxed about $7800 through PAYE.

Like Google, Apple and Facebook, Uber is just another tax-cheating parasite, refusing to contribute to the infrastructure and society that makes their business model possible. Kiwis should not support such businesses.