Uber Canada is challenging a Canada Revenue Agency tax reassessment requiring it to account for sales tax on rides provided using the service. Uber Canada said it shouldn’t be responsible for those taxes as drivers—who it does not consider employees of the company—are the ones actually supplying the rides. (Financial Post)
Talking point: This is Uber’s latest regulatory trouble in Canada. As Canadian Uber drivers pursue a class-action lawsuit to be recognized as employees rather than contractors, Ontario’s Court of Appeal has said that a clause in the company’s services agreement requiring all disputes to go through arbitration in the Netherlands amounts to illegally outsourcing an employment standard. In this case, Uber has been audited for the period of October 2012 to the end of June 2013, so it’s yet to be seen if similar services like Lyft will face the same scrutiny.