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| London's black-cab drivers: 'Four cabbies pay more tax than Uber' | |
| (35 minutes later) | |
| London’s black-cab drivers are considering court action to try to revoke Uber’s licence to operate in the city, citing the fact that the ride-hailing app firm pays no corporation tax in the UK. | |
| It emerged last October that Uber paid just £22,134 in UK corporation tax in the most recent financial year, despite making an £866,000 profit. The tax paid related to amounts deferred from previous years when Uber’s UK operation made a loss. | It emerged last October that Uber paid just £22,134 in UK corporation tax in the most recent financial year, despite making an £866,000 profit. The tax paid related to amounts deferred from previous years when Uber’s UK operation made a loss. |
| “Any four black-cab drivers pay more tax than Uber,” said Steve McNamara, the general secretary of the Licensed Taxi Drivers Association (LTDA). “We’re looking at a judicial review of Uber’s original licence [to operate in London]. It seems to us that Uber is not fit and proper. Uber is a worldwide conglomerate that has ignored regulators in other parts of the world. How can it be fit and proper in London?” | “Any four black-cab drivers pay more tax than Uber,” said Steve McNamara, the general secretary of the Licensed Taxi Drivers Association (LTDA). “We’re looking at a judicial review of Uber’s original licence [to operate in London]. It seems to us that Uber is not fit and proper. Uber is a worldwide conglomerate that has ignored regulators in other parts of the world. How can it be fit and proper in London?” |
| He said it is immoral that Uber does not pay UK corporation tax. “Even Steve Hilton [David Cameron’s former adviser] wants to put a spotlight on people within Downing Street. How can it be right that these companies get away without paying tax?” | He said it is immoral that Uber does not pay UK corporation tax. “Even Steve Hilton [David Cameron’s former adviser] wants to put a spotlight on people within Downing Street. How can it be right that these companies get away without paying tax?” |
| San Franciso-based Uber has raised about $10bn (£7bn) from financing rounds but is not yet turning an overall profit as it seeks to expand in territories around the world. The company says it is at a very different stage to a company like Google, given it is still making heavy losses overall. | San Franciso-based Uber has raised about $10bn (£7bn) from financing rounds but is not yet turning an overall profit as it seeks to expand in territories around the world. The company says it is at a very different stage to a company like Google, given it is still making heavy losses overall. |
| An Uber spokesperson said: “The comparisons being made with other companies are misplaced. They are profitable and have been for years. Uber is younger and still investing heavily. | An Uber spokesperson said: “The comparisons being made with other companies are misplaced. They are profitable and have been for years. Uber is younger and still investing heavily. |
| Related: Rise in London minicab numbers 'increase journey times by 10%' | Related: Rise in London minicab numbers 'increase journey times by 10%' |
| “We make a loss and corporation taxes are paid on profits not revenues. In addition the vast majority of the revenue generated via our technology stays with our driver-partners in the local economy. When it comes to comparisons with taxis unlike black cabs we don’t take cash so all payments to drivers are traceable by the tax authorities.” | “We make a loss and corporation taxes are paid on profits not revenues. In addition the vast majority of the revenue generated via our technology stays with our driver-partners in the local economy. When it comes to comparisons with taxis unlike black cabs we don’t take cash so all payments to drivers are traceable by the tax authorities.” |
| John Christensen, the co-founder of the Tax Justice Network, said there could be some profit-shifting in the case of Uber that has reduced the group’s UK profits. | John Christensen, the co-founder of the Tax Justice Network, said there could be some profit-shifting in the case of Uber that has reduced the group’s UK profits. |
| The firm was able to pay such a low sum partly because it legally transfers profits generated within the UK to its sister company in the Netherlands, where it would be liable for a lower rate of tax. | The firm was able to pay such a low sum partly because it legally transfers profits generated within the UK to its sister company in the Netherlands, where it would be liable for a lower rate of tax. |
| Black-cab drivers in London last year conducted a campaign aimed at highlighting their struggle with Uber. Taxis and billboards across the capital were plastered with posters claiming that Uber does not pay tax in the UK. | Black-cab drivers in London last year conducted a campaign aimed at highlighting their struggle with Uber. Taxis and billboards across the capital were plastered with posters claiming that Uber does not pay tax in the UK. |
| The posters depicted Uber’s senior vice-president of policy and strategy, Rachel Whetstone (who is married to Hilton), and Cameron, with whom she is friends, beside a picture of George Osborne. | The posters depicted Uber’s senior vice-president of policy and strategy, Rachel Whetstone (who is married to Hilton), and Cameron, with whom she is friends, beside a picture of George Osborne. |
| The LTDA said the campaign was to “highlight what we are up against”. It has a fighting fund of £1m to fund any legal action. It is working on the potential action with in-house lawyers but is considering appointing a City law firm. | The LTDA said the campaign was to “highlight what we are up against”. It has a fighting fund of £1m to fund any legal action. It is working on the potential action with in-house lawyers but is considering appointing a City law firm. |