There are many alternative phrases to describe the sharing economy. One of them is the “collaborative” economy. Collaboration seems to be in very short supply, however, when it comes to the taxation of the companies and individuals involved.
It seems that the attitude of many tax authorities when confronted with new ways of doing business in the digital economy is to tax first and ask questions later. Indeed, in many cases, they just tax, and don’t bother with awkward questions.
Uber’s business model seems to be a particularly challenging one for traditional tax regimes. Uber insists that its drivers provide “ride-sourcing” services, rather than traditional “taxi” services. Many governments, on the other hand, beg to differ, which puts Uber drivers and the company itself in a very uncertain position with regards to tax and regulation.
It’s at this point I would like to … Read More »