22 March 2016
Uber was founded in 2009 in San Francisco and now operates in 56 countries throughout the world including Australia.
It has a market valuation of over US$60 billion.
Last financial year Uber paid only $249,000 company tax in Australia compared to $1.25m in payroll tax.
It appears, however, in light of a recent ruling of the ATO that Uber would not pay payroll tax on drivers’ commissions even though commissions are included as “wages” under the Payroll Tax legislation.
The ATO has issued a ruling that Uber drivers must be registered for GST. People who pay GST on their earnings are regarded as running their own businesses and are not employees.
The ATO ruling would result in Uber not paying payroll tax on their drivers’ receipts because “employees” don’t pay GST on their earnings.”
