Karygiannis asks CRA to investigate whether Uber paying appropriate taxes
Codi Wilson, CP24.com
Published Wednesday, July 22, 2015 6:52AM EDT
Last Updated Wednesday, July 22, 2015 9:02AM EDT
Toronto city councillor Jim Karygiannis launched a new attack on Uber this week, accusing the company of “skirting” laws and neglecting to pay appropriate taxes.
In a news release issued Wednesday, the Scarborough-Agincourt councillor said he has asked the Canada Revenue Agency to investigate Uber's tax practices when it comes to paying HST.
“I received a copy of an email between an Uber user and Uber indicating that ‘There is no tax charged on the rides. We also do not charge and [any] HST,'" Karygiannis said in a written statement released Wednesday.
“I do not understand how any company, operating in Canada, can avoid paying the HST.”
Uber spokesperson Susie Heath said that while Uber pays all applicable taxes, it is up to Uber drivers to collect HST from customers and file it themselves.
"80 (per cent) of fares for Uber trips go to local and independent driver partners who must file their HST obligations. As a registered Canadian business, Uber Canada pays all applicable taxes and we regularly communicate to driver partners on how to file their HST as applicable," Heath said in an emailed statement to CP24.
Karygiannis’ letter comes less than two weeks after city councillors voted to ask police and bylaw officers to crack down on Uber drivers while council works to include the company in its taxi regulations.
Speaking to CP24 Wednesday morning, the Ward 39 councillor said Uber needs to take "corporate responsibility."
"We need to bring everybody under the same banner, under the same level playing field," Karygiannis said.
"They should have corporate insurance, they should be paying taxes."