Uber files legal action against ATO

Uber has sought legal action against the Australian Taxation Office at the federal court, claiming that its UberX ridesharing drivers are being unduly charged excess Goods and Services Tax or GST. It has said in a statement that its driver partners, a term that indicates the people who have registered themselves with the Uber to offer ridesharing services, are being targeted unjustly by the ATO.

According to the Cnet.com, despite the claims made by the Uber, the Australian Taxation Office said that its stand with the UberX is consistent with the laws of the goods and services. It also said that "ridesharing services, such as Uber drivers, need to have an ABN and be registered for GST." The ridesharing drivers were given a transition period by the Tax Office, which said that the GST would not be collected until August 1. Uber filed application in the federal court on the same day, asking to exempt its driver partners from paying GST.

Since 2014, Uber has been faced with a number of challenges, including fines and legal actions, repudiation from the taxi industry and others. But it has been asserting itself as the new change in an outdated transport industry that aims at making transportation “as reliable as running water.” Moreover, it has claimed that the drivers of the ridesharing are contractors who merely use its platform and software to provide services of their own and are not hired by the company.

The Sydney Morning Herald, on the other hand, reported that the ATO is firm in its standing. It maintains that the ridesharing drivers must pay GST either on a monthly basis or quarterly. ATO has been giving fair warning to the UberX ridesharing drivers about paying GST for months. Uber has declined to accept this by stating that ridesharing in not covered in the old laws and that the drivers should not be paying GST unless their turnover exceeds $75,000. ​"We believe all our driver-partners should pay their appropriate share of tax and meet their tax obligations," it said in an emailed statement.

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