Torah's ATO Ruling Action - Is the ATO correct to charge Uber drivers with GST?

Discussion in 'Melbourne | Uber Drivers Forum' started by admin, Jan 6, 2018.

  1. admin

    admin Administrator Staff Member

    Torah (forum nickname) is a driver seeking to launch legal challenge to the ATO in the question:
    Is the ATO correct to charge Uber drivers with GST

    Site members please note: RSDU are happy to assist Torah by way of providing drivers (wishing to take part in this action) with a free communication platform, a private/public forum. But please bear in mind the RSDU is not taking an active part in this legal action.

    We are here to help drivers communicate regarding this matter, but please be advised this action is @Torah's own private initiative together with any other drivers that wish to join him and take part.

    @Torah , please go ahead and post your story in more detail in this public thread.

    A private forum is also available for members that wish to take part. @Torah please PM to advise of members you would like to be added to the private forum and we will add them ASAP.
    Last edited: Jan 6, 2018
  2. Torah

    Torah Member

    Hi all.

    It occurred to me when the ATO wrote to me, after they were successful in Federal Court against Uber, that I was running an enterprise that their definition of an enterprise was ludicrous , given that there is no prospect of growing the 'enterprise' unlike any other business I had been involved with.

    The only way the enterprise could grow was if, restrictions were placed on the number of drivers allowed to join uber and uber would allow me to hire out my vehicle/vehicles to a number of drivers and I would get a percentage. Basically like taxis. However, the fares are so low that the current drivers are unable make a go of it.

    I phoned the ATO and questioned them about it. Their answer was that they were relying on the Court decision. I pointed out that the court wasn't asked to rule if the drivers should pay gst, only that gst was payable as uber provides the same service as taxis.

    I then wrote into the ATO on the 7th April 2017 and Mr Tony D'Allura replied. I then referred Tony to the ATO in an email dated 25thApril that despite his assertions that I may have answered the ATO decision tool incorrectly if I am an employee or a contractor and pointed out that the ATO has a page to help people understand if they are an employee or contractor. It states that "a worker is legally an employee , a contract saying the worker is a contractor will not make the worker a contractor at law.

    Following that I received an email, on the 5th June from Mr Robinson, who is the Senior Technical Adviser gst. He referred to my observation about the ATO decision tool and stated that as the ATO views ride sourcing arrangements are via facilitators
    And therefore the the decision tool doesn't apply.

    He stated that "The tool will be updated to ensure that it excludes ride sourcing arrangements. Thank you for bringing the matter to our attention.

    I then consulted Warlows legal about the matter and a private ruling application was lodged direct to Mr. Robinson on the 29 th of June and ATO sought clarification of fact which was sent in on the 26th July.

    As we know the ATO failed to reply and now an objection and draft ruling needs to be submitted to ATO .

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