Tax Office to check Uber drivers for undeclared income
The Australian Tax Office (ATO) will start obtaining data from services like Uber to see if their income matches their tax records.
A data-matching programme was launched by the ATO to obtain the information. Data that will be gathered are from an estimated 10,000 to 15,000 individuals who have provided taxi services.
The office is looking at about 15,000 records, but this number will not reportedly equate to individual drivers. In May, the Sydney Morning Herald reported that the tax office issued a guidance barring Uber drivers from avoiding goods and services tax, or GST, payments that fall under the AU$75,000 turnover threshold.
Data that will be gathered will automatically be matched with ATO's records to make sure drivers have complied with their tax obligations, income tax and GST included. The data will allow the office to directly communicate with the drivers via letters, SMS and phone calls. Getting in touch with drivers offering ride-sourcing services ensures that the individual is aware of his or her tax obligation, which includes GST registration, lodgment, reporting and payment.
Through the accounts held by sourcing facilitators like Uber, payment details of drivers for the years 2013 to 2014, 2014 to 2015, and 2015 to 2016 will be checked.
Ride-sourcing services like Uber is an example of the relatively new "sharing economy.” Drivers engaged in ride-sourcing enterprises providing "taxi travel" were advised by the ATO for GST purposes in May. The office also warned drivers to declare their income for tax filing. Drivers were given until August to register.
The Herald Sun reports that this is the first time the ATO has conducted a data-matching programme in this area.
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