Uber to Resume in Calgary December 6 2016

[Fuzz]

http://www.cbc.ca/news/business/taxe...462006?cmp=rss

Good article on the tax obligations. If you make over $30 000, and have to start paying GST/HST it's gotta be really hard to make any sort of money with Uber.

The article doesn't mention it, but does Uber pay taxes on it's 25% share, including GST/HST? Or do they claim they don't operate in Canada and aren't subject to our taxes?

[Regular_John]

Originally Posted by Fuzz

http://www.cbc.ca/news/business/taxe...462006?cmp=rss

Good article on the tax obligations. If you make over $30 000, and have to start paying GST/HST it's gotta be really hard to make any sort of money with Uber.

The article doesn't mention it, but does Uber pay taxes on it's 25% share, including GST/HST? Or do they claim they don't operate in Canada and aren't subject to our taxes?

That's actually a pretty significant issue there. I know from my freelance days I could essentially add the applicable GST/PST onto my invoices to clients with my GST number.

But Uber drivers don't really invoice anyone, the app handles all the billing, and as we know, drivers are not Uber employees.

I believe a guy in Quebec ran into a similar issue renting with Air B&B and hotel taxes. As far as he's concerned Air B&B is his only "client" and any GST/Hotel taxes should be added onto their cost, the same way any consumer would pay taxes on a chocolate bar.

[Fuzz]

I emailed the article's author to see if he had looked into my question about Uber corporate taxes.

And ya, without the ability to charge the GST in addition to the bill they have no control. Personally I think Uber should be forced to charge GST/HST on all rides for the entire fare, as they should be paying their share as a corporation, and the drivers wouldn't have to worry about it.

[GGG]

I would think that the uber billing company would be required to charge GST on the customers behalf or clearly state that GST is included in the metered rate.

Because structurally when Uber collects money its just a payment an invoicing service completely independent from the customer matching service. So it should be subject to Canadian tax and remittance laws.

[Fuzz]

Response for the CBC journalist:

Offhand, I don't know if Uber does any off-shoring of its assets. (I didn't have a chance, while writing that one, to look at the corporate tax angle.) They say they pay all required taxes -- but that could mean anything.

Hopefully he looks into it. I'm not sure how you could get away with running a business like they do and not pay things like GST.

[mrkajz44]

I highly doubt Uber would not be including GST in their fares and then remitting it to the government. A lot of people don't really understand how GST works, but essentially the business is the middle man. They charge consumers GST on their goods / services and then remit that amount to the government each month. Uber itself, or any business is not paying a penny (nickle) of GST - it's strictly a consumer cost that is collected by the business and passed on to the government.

[Fuzz]

So shouldn't they be collecting it? Uber is a service, is it not?

[mrkajz44]

I re-read the article and now understand what you are saying. Since Uber is charging directly though the app, they should be charging and remitting GST, but it appears they are trying to push that responsibility to the drivers (Toronto article from July 2015):

http://www.thestar.com/news/city_hal...llect-hst.html

So I think you might be right in the sense that Uber doesn't collect any GST, points the fingers at the drivers to do so, and the drivers go ¯\_(ツ)_/¯

[Regular_John]

Originally Posted by mrkajz44

I re-read the article and now understand what you are saying. Since Uber is charging directly though the app, they should be charging and remitting GST, but it appears they are trying to push that responsibility to the drivers (Toronto article from July 2015):

http://www.thestar.com/news/city_hal...llect-hst.html

So I think you might be right in the sense that Uber doesn't collect any GST, points the fingers at the drivers to do so, and the drivers go ¯\_(ツ)_/¯

This is essentially it. And another pretty scummy move by Uber.

Uber handles the end user transaction, yet doesn't collect GST, nor give the driver's any opportunity to do so.

The driver is then stuck in a position where they are either trying to collect GST from Uber (see above) or hit up the customers whom have already paid with their credit card direct to Uber?

I actually went back and checked my Uber receipt from the one ride I took in Calgary while they were here, and I can confirm, no GST charged on the ride.

[Resolute 14]

Of partial relevance, Uber is being sued in the US on anti-trust grounds on the basis that they don't allow their "independent contractors" to complete with each other on price. It's all centrally managed by Uber, so is heading to court as an accusation that Uber and its drivers are engaging in an illegal price fixing scheme.

Of course, that accusation goes right out the window if the drivers are considered employees. Except Uber is trying to fend off a lawsuit over that as well. In short, they are trying to argue out of both sides of their mouths. And that is the same here in the case of the GST: If Uber refuses to allow their "independent contractors" to collect it, then I don't see how Uber can claim it is not its responsibility to do so.

AirBNB, I have noticed, does collect state hotel taxes.

[peter12]

Another fine, skeptical piece on Uber:

http://waitbutwhy.com/2016/04/confes...iness-yet.html

4) No insiders are allowed to sell their shares. Seems like something you would do if you were trying to ruthlessly control the messaging around your company valuation because you’re not sure the business really backs up that valuation.

[jschick88]

Immediately thought about 4x4 when reading this.

Facing the prospect of a late-night walk on dark downtown streets, 25-year-old Jenna Leniczek opted to take a short cab ride on Saturday rather than venture out on her own. She said the driver told her to get out of his taxi.

Leniczek was travelling a mere six blocks in order to get back to her car after leaving National on 10th.

"He said it was not worth his time to drive me there," said Leniczek of the Checker Cabs driver.

"It was dark and to get from 10th to Stephen Avenue — there's train tracks, you have to go under the train tracks and under the bridge — it's not exactly a direct route and it's not well lit. So I didn't feel comfortable walking at night and I took the safety precaution of taking a cab, and that should be okay."

In fact, it is okay. Cab drivers are prohibited from rejecting a fare because it's a short trip, as outlined in the city's Taxi Bill of Rights.

"Trip refusal is expressly mentioned in the bill of rights," said Mario Henriques, the chief livery inspector for the city. "Taxis are prohibited from refusing a trip because of length of trip. So again, this is something we take very seriously."

Leniczek said she was shocked after getting kicked out of the cab, but quickly found another and jumped in. Once inside, she said she had to convince the second driver to take her and even offered $20 for the short ride.

"He took the $20. It wasn't even a 'oh no you don't have to do that' or anything like that. He took the $20," she said.

A Facebook post she wrote about the experience quickly picked up steam online after her friends asked that she make it public.

"It's obviously not an uncommon problem within Calgary if all these people are talking about it and all being able to relate, which I think is a big issue," she said.

http://www.cbc.ca/news/canada/calgar...541961?cmp=rss

[RougeUnderoos]

Funny that cabbies were whinging just last week about the new rate rules and how it's "taking food off their table". Kinda hard to have sympathy for someone not getting paid enough if he outright refuses to take money.

For the last few months I've called Calgary United cabs if I need a lift and they are a hell of a lot better than Checker or Associated. Clean cars, the drivers listen, dispatch never rings busy, and they never give the runaround about the debit/credit machine not working. One of their drivers told me that there are 100-120 drivers and all of them were sick of working for the big companies and started this one.

I don't know if it's true or not and don't really care I guess, but the whole experience is consistently much better than the "big" companies.

[transplant99]

Originally Posted by jschick88

Immediately thought about 4x4 when reading this.



http://www.cbc.ca/news/canada/calgar...541961?cmp=rss

"Trip refusal is expressly mentioned in the bill of rights," said Mario Henriques, the chief livery inspector for the city. "Taxis are prohibited from refusing a trip because of length of trip. So again, this is something we take very seriously."

lol

[4X4]

Originally Posted by jschick88

Immediately thought about 4x4 when reading this.



http://www.cbc.ca/news/canada/calgar...541961?cmp=rss

It's going to be really interesting to me to see if the taxi companies learn anything from this attempt by Uber to crack the market. It's pretty obvious that Uber isn't much better for the "employees", so it doesn't hurt my feelings that they're getting taken to task on their insurance and regulations. The real issue is that taxis in Calgary enjoy this oligopoly for no good reason. It's like only allowing 100 gas stations in Calgary and so they all charge an extra 50 cents a liter, and they close at 10 pm, or just decide that they don't like your compact car that's only going to buy $30 worth of gas, so you can't fill up there. It's like our cell phone industry in Alberta charging us up the ass for crappy service. But with this pot being stirred, I think that whether it's Uber or another company, things are about to change.

It is so fricken ridiculous. I've been in that girl's shoes plenty of times. Maybe not for personal safety under 9th ave, but definitely because I was at 1410 and lived about 10 blocks away, and it's -20 outside. But that's too short of a ride for cabs. But climbing that hill in flat sole shoes and not wearing long johns and having a few drinks... Do I sound like a wussy? Well, I'm not. I've worked in the Arctic in the winter. But I'm not going to the pub for an Xmas party wearing a f'n Helly Hanson -60 onesie & boots.

Ohh, right. I should have planned ahead by driving my truck to the pub. That'll get me back up the hill to Bankview in no time, and it doesn't matter what shoes I'm wearing.

I'm quite interested in Rouge's post about Calgary United cabs. Never heard of them. I don't see how a new company starts up when plates are limited, but if there is actually a company that answers their phone at 1am on a Saturday, and they'll drive me whether it's 10 blocks or 162 blocks, they get my money.

[Dan02]

Indeed, as I mentioned earlier in the thread I had a cabbie refuse us a ride because we weren't going his way so we went to file a complaint. They told us to fill out a report and they would get back to use in 7 days, think we ever heard back?

[transplant99]

Originally Posted by Dan02

Indeed, as I mentioned earlier in the thread I had a cabbie refuse us a ride because we weren't going his way so we went to file a complaint. They told us to fill out a report and they would get back to use in 7 days, think we ever heard back?

But....but.....they "take it very seriously" don't ya know.

Its so blatently obvious what the "commision" is and who they pander too but to suggest it, may make someone else label you as a "caricature", when its only common sense.

[heep223]

I've had so many horrible experiences with cab drivers. Like anything there obviously good ones out there but most of them are scummy, and really expensive.

And well with no Uber, and Car2Go no longer servicing our neighbourhood, and our councillor a completely useless ####, and transit also completely useless when we need to get home from somewhere....we are forced to use said cab service.

Maybe I'll just drive drunk this weekend.

[RougeUnderoos]

Originally Posted by 4X4

I'm quite interested in Rouge's post about Calgary United cabs. Never heard of them. I don't see how a new company starts up when plates are limited, but if there is actually a company that answers their phone at 1am on a Saturday, and they'll drive me whether it's 10 blocks or 162 blocks, they get my money.

http://www.calgarycabs.ca/

I lead what the kids call a "dull existence" and rarely am I looking for a cab at 1am on a Saturday, but in the middle of a weekday this outfit is good.

They also just dropped their rates by 20% and have a sticker on the window saying so and that they have the lowest rates in town.

They answer the phone and the car has always shown up when they say it will. They could charge me 20% more than the others just for that.

[calgaryblood]

Originally Posted by 4X4

I'm quite interested in Rouge's post about Calgary United cabs. Never heard of them. I don't see how a new company starts up when plates are limited

Anyone can start a Taxi business...as long as you can convince the drivers who actually own the plates to join your company.

Most plates are owned by an actual Taxi driver and not the company they work for.