Uber Canada has reached an agreement with the CRA regarding tax reassessments from a few years ago.
Last December, Uber Canada filed a notice of appeal with the Tax Court of Canada about tax reassessments the Canada Revenue Agency issued in December of 2014.
Now, according to a document filed with the Tax Court of Canada (via Financial Post), both the federal government and Uber agreed “on a without costs basis” judgment that would allow the ridesharing company to appeal its tax documents from the last quarter of 2012 and the first half of 2013. The report notes that tax and penalties that the firm was reassessed for would be eliminated.
While the money involved in the reassessment was relatively small for the firm ($617,772.89), the core issue on which the issue balanced upon was more important.
“The CRA’s assumption underlying the Reassessments is that UCI (Uber Canada) was responsible to account for GST/HST on the supplies of transportation services to riders,” the notice of appeal said. “However, UCI did not supply transportation services to riders during the Reporting Periods, or at any other time. At all time (sic), only the driver-partners supplied the transportation services to the riders, not UCI.”
Uber Canada said that it was instead providing “marketing and support services” to its fleet of drivers during the relevant periods, and claims it properly “charged, collected, and remitted sales taxes.”
According to the “consent to judgment” document states that the issue would be referred back to the Minister of National Revenue for “reconsideration and reassessment on the basis that” the aforementioned amount in net tax and penalties are removed. The document states that Uber Canada is “entitled to no further relief.”
“This was an administrative issue and we are pleased to have come to a resolution with the CRA,” an Uber spokesperson said.
Read the detailed report over at Financial Post.