SANTIAGO (Reuters) – chile’s Supreme court has ordered the Bank of Chile, the tax and customs administration to examine the local user accounts on the Uber (UBER.(N), and the rejection of the appeal of the ride-sharing company, according to a ruling seen by Reuters on Tuesday.
FILE PHOTO: A screen displays the logo of the company is Uber Technologies, Inc. on the day of the IPO on the New York Stock Exchange (NYSE) in New York, New York, USA, on 10 May 2019. REUTERS/Brendan McDermid/File Photo
The bank was ordered to provide the Internal Revenue Service (SII) of the details of the payments to and from two bank accounts controlled by the Ubers of local entity from January 1, 2015, and May 30, 2017, in conjunction with information on another bank account, but it had been opened previously and then closed, within 10 business days of delivery of the decision.
It is the latest in a series of legal actions globally, of which Uber and its drivers regarding issues like working conditions, regulations, and taxes that may infringe on the company’s business and its profitability.
The court document is said to Uber, Chile, SPA to receive a significant payment from the parent company in the Netherlands.
The tax hit from the payments made by Uber in the Netherlands, labelled the Driver a Fee to Chile increased by more than 500 million Chilean pesos ($697,600) for the 2016 tax year, and up to 60 billion pesos for the 2017 fiscal year, according to the judgment of the district court.
Uber had appealed against the decision of the tax authority and the Customs Court of justice in the city, and the Chiles Court held that the bank secrecy can be lifted for inspection by the tax authorities.
“The act provides for SII, to ask the court’s leave, for the effective exercise of the supervisory powers for the acquisition of the essential background, in order to check the credibility and the integrity of the tax, the Supreme Court ruled, in its judgment, it said.
Uber did not respond to Reuters ‘ request for comment on the finding.
The Internal Revenue Service said in a statement that “all of the taxpayers involved in the development of a profit-making activity in the country, to legal entities or natural persons, Chilean or foreign, shall be in accordance with the obligations established by the tax legislation.”
An Uber spokesperson told Reuters in March that it encouraged drivers to declare their income to the inland revenue as self-employed.
“Uber has a presence in all the regions of Chile, more than 85,000 drivers that use our platform to make a living, and for their families, and more than 2.2 million people have to rely on Uber to move around their towns and cities,” he said.
Uber and other ride-sharing and digital applications, is technically illegal in Chile, where it is the law to govern them, it is postponed to the middle of the statements made by the traditional taxi companies and the trade unions.
Last week, Uber announced that it would seek to buy a majority stake in Santiago-based grocery delivery, Cornershop has to offer Uber customers to the operating system for your day to day life.
Reporting by Aislinn Laing; Editing by Raju Gopalakrishnan