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Uber paid no corporation tax in 2014
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Author:  captain cab [ Tue Oct 20, 2015 7:44 pm ]
Post subject:  Uber paid no corporation tax in 2014
Uber paid no corporation tax in 2014 by ‘exploiting loopholes’


Controversial US taxi firm Uber paid no corporation tax in the UK last year despite making £11 million (US$17 million) in revenue, accounts reveal.

The latest accounts for Uber show its UK arm made a total of £866,302 in profit in 2014 – £566,302 of which would be liable for tax at 21 percent.

It also deferred a payment of £22,134, which can be rolled over to next year.

However, the firm has not broken the law, as it is allowed to transfer profits to its Netherlands arm, where taxes are lower.

Critics are certain the firm has purposely exploited tax loopholes to avoid paying a single penny.

‘Uber takes advantage’

Commenting on these revelations, the Tax Justice Network said Uber “takes advantage” by shifting their profits around the world.

“When a multinational company takes advantage of a tax loophole by shifting their profits around the world via tax havens then that gives them an unfair advantage over companies entirely based in the UK,” Tax Justice Network researcher George Turner told RT.

“That is why taxi drivers in the UK are so angry at what is happening with Uber, they feel that they losing business because Uber abuses the tax system to gain an unfair advantage over them,” he added.

‘Formal complaint to govt’

Licensed Private Hire Car Association chief Steve Wright told RT he is “in the midst of writing a formal complaint to the government and TfL [Transport for London].”

Uber has previously been criticized for not paying its fair share of tax.

Earlier this year an alliance of more than 20,000 taxi and minicab drivers called for the government to crack down on the app’s “unfair” tax practices.

Wright accused Uber of gaining an “uncompetitive advantage” by processing London bookings through its Dutch subsidiary so it pays a lower rate of VAT on the commission it takes from fares.

“Uber appears to have structured its [London] operation with the sole purpose of avoiding the application of VAT in the UK at the prevailing rate,” Wright said in a letter to HM Revenue & Customs in January.

“This is despite being a UK-registered company and a Licensed London Private Hire Operator, promoting its services in the UK and carrying out journeys in the UK for UK credit and debit cardholders,” he added.

‘Compliant with all tax laws’

The taxi firm still insists it is compliant with tax law.

“Uber complies with all applicable tax laws ... As such we are fully compliant with the tax laws of the United Kingdom and the European Union,” an Uber spokesperson said in a statement.

“Corporation tax is paid on profits not revenue. Deferred tax is an accounting principle that dates back to Benjamin Disraeli to encourage investment. It’s not a loophole,” the firm told the Metro on Tuesday.

“We’re a young company – only three years’ old in the UK – that’s investing heavily. We’re a significant net contributor to the local economy everywhere we go, creating new opportunities for thousands of professional drivers.

“The lion’s share of every fare stays local, as it remains with the drivers who use Uber. And unlike the cash-in-hand past of this industry, we only take card payments so every fare is traceable and transparent.”

source: https://www.rt.com/uk/319161-uber-no-corporation-tax/
Author:  captain cab [ Tue Oct 20, 2015 7:45 pm ]
Post subject:  Re: Uber paid no corporation tax in 2014
don't worry chaps - you can all transfer your profits to another company in Holland so you can pay less tax. :lol: :lol: :lol:
Author:  toots [ Tue Oct 20, 2015 7:57 pm ]
Post subject:  Re: Uber paid no corporation tax in 2014
captain cab wrote:
don't worry chaps - you can all transfer your profits to another company in Holland so you can pay less tax. :lol: :lol: :lol:


I was just thinking that. The fault is not with Uber it is with the loophole. Why do we have a loophole in our tax system?
Author:  edders23 [ Tue Oct 20, 2015 7:58 pm ]
Post subject:  Re: Uber paid no corporation tax in 2014
So our clever government would rather be nice and cosy with the chinese and the likes of vodaphone amazon starbucks,Google etc. who want to grab loads of uk profit and pay no tax instead of support British businesses who generate real tax income to boost treasury funds and pay to house all those nice immigrants they are bringing in.

No wonder we are the most heavily in debt nation on the planet :sad:
Author:  captain cab [ Tue Oct 20, 2015 7:58 pm ]
Post subject:  Re: Uber paid no corporation tax in 2014
toots wrote:
captain cab wrote:
don't worry chaps - you can all transfer your profits to another company in Holland so you can pay less tax. :lol: :lol: :lol:


I was just thinking that. The fault is not with Uber it is with the loophole. Why do we have a loophole in our tax system?


for the rich
Author:  toots [ Tue Oct 20, 2015 8:06 pm ]
Post subject:  Re: Uber paid no corporation tax in 2014
captain cab wrote:
toots wrote:
captain cab wrote:
don't worry chaps - you can all transfer your profits to another company in Holland so you can pay less tax. :lol: :lol: :lol:


I was just thinking that. The fault is not with Uber it is with the loophole. Why do we have a loophole in our tax system?


for the rich


Oh well I guess that won't be closed any time soon :lol:
Author:  captain cab [ Tue Oct 20, 2015 9:06 pm ]
Post subject:  Re: Uber paid no corporation tax in 2014
toots wrote:

Oh well I guess that won't be closed any time soon :lol:


:lol:
Author:  captain cab [ Tue Oct 20, 2015 11:15 pm ]
Post subject:  Re: Uber paid no corporation tax in 2014
Image

get out of this one wonky face
Author:  toots [ Tue Oct 20, 2015 11:22 pm ]
Post subject:  Re: Uber paid no corporation tax in 2014
When did they set up shop here because they may not be due to pay corporation tax yet. Not entirely sure how long you get when you first set up a business but I know I haven't got to pay any til next year :?
Author:  captain cab [ Tue Oct 20, 2015 11:24 pm ]
Post subject:  Re: Uber paid no corporation tax in 2014
they've been in London a while, I wonder which cameraman got a pic of Jo's c*m face?
Author:  toots [ Tue Oct 20, 2015 11:28 pm ]
Post subject:  Re: Uber paid no corporation tax in 2014
captain cab wrote:
they've been in London a while, I wonder which cameraman got a pic of Jo's c*m face?


:lol: :lol: :lol:
Author:  captain cab [ Wed Oct 21, 2015 12:04 am ]
Post subject:  Re: Uber paid no corporation tax in 2014
Image
Author:  grandad [ Wed Oct 21, 2015 7:05 am ]
Post subject:  Re: Uber paid no corporation tax in 2014
As far as I was aware you had to pay corporation tax within 9 months of the end of the tax year in which the profit was made.So if your year ends an March 31st and you make £10,000 profit, as a small business, you would have to pay £2,000 corporation tax by January 1st.
Author:  Sussex [ Wed Oct 21, 2015 8:04 am ]
Post subject:  Re: Uber paid no corporation tax in 2014
Surely all the more reason for us to leave the EU.

:-k
Author:  captain cab [ Wed Oct 21, 2015 10:13 am ]
Post subject:  Re: Uber paid no corporation tax in 2014
Uber's Corporation Tax Payments Are Lower Than Five Black Cab Drivers' Tax Bills Put Together



Uber’s reputation has taken yet another knock after it was revealed that the company paid just £22,134 corporation tax in the UK last year despite making a £866,302 profit here.

The figure sounds small enough on its own but compare that to the average amount paid in tax by black cab drivers in London and things look even worse.

The Huffington Post UK spoke to accountancy firm Martin Cordell And Co., which specialises in the taxi trade, who say the average driver pays around £5,000 in tax - although some pay up to £12,000.

Uber paid just £22,134 corporation tax in the UK last year

This means it would take just five taxi drivers to cover Uber’s entire corporation tax bill.

The taxi-hailing service was reportedly able to pay such a low sum as it legally transferred profits to its sister company in the Netherlands, where it would be liable for a lower rate of tax, the Press Association reported.

An Uber spokesman denied the firm had used any loopholes and insisted it had paid "every penny of tax that is due". He added that the firm was a "significant net contributor" to the economy.

He said: ”With corporation tax, past losses offset current and future profits - as is the case with Uber which made losses in the UK in previous years.

"This is an accounting principle to encourage investment that dates back to Benjamin Disraeli. It is not a loophole.

"We are a young company - only three years old in the UK – that is investing heavily.

"We are a significant net contributor to the local economy everywhere we go, creating new opportunities for thousands of professional drivers.

"The lion's share of every fare stays local, as it remains with the drivers who use Uber. And unlike the cash-in-hand past of this industry, we only take card payments so every fare is traceable and transparent."

The news comes just a week after Facebook revealed it paid just £4,327 corporation tax in the UK in 2014.

The revelation caused outrage, particularly given that the average UK worker pays £3,180 in income tax and £2,213 in national insurance payments, according to the Independent.

A string of multinational firms, including Starbucks and Amazon, have been criticised in recent months for taking steps to legally avoid corporation tax.

source: http://www.huffingtonpost.co.uk/2015/10 ... 38000.html
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