Taiwan’s government says Uber owes taxes estimated at TWD100 million ($3.2 million) and it may force the taxi-hailing service to stop doing business in the country since it has misrepresented the nature of its operations.
The country’s Investment Commission said earlier this month Uber may be asked to leave Taiwan because it claims to be an internet-based technology platform rather than a transportation service, Reuters reported. The commission is expected to make a decision this month.
Uber, which started operations in Taiwan in 2013, has not had to pay sales tax in the past, but the government is revamping how it taxes global online service providers. The company last week participated in discussions with the National Taxation Bureau on possible tax reform for cross-border digital services.
The National Taxation Bureau said it has evidence showing Uber evaded tax and it has taken action in response to the findings, China Daily reported.
Uber said it doesn’t owe sales tax and insists it is meeting all of its tax obligations.
Last week the Taipei City Professional Drivers’ Union filed a formal complaint against Uber Taiwan for tax evasion.
Uber is not new to controversy over its business model and practices and has faced challenges from many governments and taxi groups over its debatable legal status.
Indonesia’s government in June warned operators of taxi-hailing services, including Uber, it will more tightly enforce new regulations. Under Indonesian traffic law it is illegal for an individual to provide public transport services – drivers must obtain special public transport licences and operate under a cooperative or company.