London minicab drivers step up fight against UberLondon’s minicabs have joined black cabbies in questioning the legality of Uber, the cab hailing app.
Taxi drivers, who will stage a protest on Wednesday, allege that Uber is breaking the law by using an app as a taxi meter to determine charges.
Now, the Licensed Private Hire Car Association claims Uber is violating the London regulatory regime to reduce its UK tax bill.
It says Uber is breaching regulations by booking fares through an unlicensed Dutch company, although it acknowledges that the British company, called Uber London, that dispatches the cars is licensed.
The US company denies that it has stepped outside the UK licensing regime by processing payments offshore. “Uber complies with all applicable tax laws, and pays taxes in all jurisdictions, such as corporate income tax, payroll tax, sales and use tax, and VAT.” In a statement, it said: “Uber London Limited is a licensed private hire vehicle operator and recently passed with flying colours the largest inspection of records ever conducted by Transport for London.”
Steve Wright, chair of the LPHCA, said: “Uber has been providing services to passengers through Uber BV – a Dutch entity out of the reach of the UK taxman. Uber BV has effectively been acting as an unlicensed operator.”
Mr Wright said his association believes Uber drivers are also in breach of the regulations “by accepting bookings from Uber BV in their vehicles. It’s not right that a company like Uber can step out of the licensing regime as it pleases whether it’s to avoid tax or for any other purpose – this is exactly the type of corporate greed that is unacceptable to those working hard and contributing to the UK economy.”
The latest claims are likely to focus attention on Uber’s companies and partnerships in Bermuda, Ireland and the Netherlands – a structure often associated with aggressive tax planning.
In a report published last month, the Law Commission recommended reform of the regulations on taxi licensing. It said the definition of an operator should be narrowed to relate solely to the act of dispatching a driver and vehicle to carry out the regulated activity, rather than the fact of merely “inviting or accepting” a booking.
Uber said: “In relation to the recent report from the Law Commission’s, this report provides a number of recommendations for reform of the law in this area that may be debated by parliament at some future point in time.”
source:
http://www.ft.com/cms/s/0/35aa6b8a-eda2 ... z344dLoX2m
Login
Register
FAQ
Much the same as Cabfind do in other countries when booking airport transfers.
