OfTheCross
Veteran
The first is by the estimable Izabella Kaminska of FT Alphaville, who has been dogging the question of Uber’s VAT tax liability. Recall that Uber lost a ground-breaking employment tribunal ruling in 2016 over whether its drivers were employees and therefore entitled to protections like minimum wage and national insurance contributions. Uber appealed and lost, and is now appealing to the Supreme Court.
While litigation is a crapshoot, coverage of the initial ruling against Uber strongly suggested its odds of winning an appeal were low.
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Remember, that £1.1 billion is back taxes; if Uber continues to do business in the UK, it will have to pay 20% going forward too. Wonder how long it will take US analysts and reporters to ask about this potential big hit.
Iszabella cheerily concludes: “It’s a tax case ..with equally important implications for Uber’s operations in Europe, which also bear similar VAT exposure.”
Uber to Owe UK >£1 Billion in VAT if It Loses Appeal on Suit on Driver Status, Also Loses Liability Insurer | naked capitalism
While litigation is a crapshoot, coverage of the initial ruling against Uber strongly suggested its odds of winning an appeal were low.
...
Remember, that £1.1 billion is back taxes; if Uber continues to do business in the UK, it will have to pay 20% going forward too. Wonder how long it will take US analysts and reporters to ask about this potential big hit.
Iszabella cheerily concludes: “It’s a tax case ..with equally important implications for Uber’s operations in Europe, which also bear similar VAT exposure.”
Uber to Owe UK >£1 Billion in VAT if It Loses Appeal on Suit on Driver Status, Also Loses Liability Insurer | naked capitalism