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 Unfortunately, Uber loses extortionist tax battle in OZschwitz Federal Court

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PostSubject: Unfortunately, Uber loses extortionist tax battle in OZschwitz Federal Court   Fri Feb 17, 2017 8:37 pm

Ride-sharing service Uber has lost its battle with the Australian Taxation Office over whether its drivers have to pay the 10 per cent GST.

Uber had challenged an ATO ruling that its drivers were legally classified as providing taxi travel and therefore needed to be registered for GST.

But the Federal Court in NSW on Friday ruled that a 2015 Uber trip at the centre of the case constituted supplying "taxi travel" within the meaning of the GST Act.

That means Uber drivers must pay GST on their earnings.

Also read: How Airbnb is 'growing like a weed'

"Broadly construed, and having regard to other relevant matters of construction, I consider that the word 'taxi' is sufficiently broad in its ordinary meaning to encompass the uberX service supplied," Justice John Griffiths said in his judgment.

Whether or not Uber trips were classified as "taxi travel" was key because under the GST Act enterprises with a turnover of less than $75,000 don't need to register for the tax - with the exception of taxi and limousine operators.
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Unfortunately, Uber loses extortionist tax battle in OZschwitz Federal Court

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