WELLINGTON: Uber used a complicated structure of international companies to reduce its New Zealand tax bill, accounts filed with Companies Office show. Uber New Zealand Technologies paid $9397 in tax last year despite earning revenue of more than $1 million. A mans hand holding a smartphone with the Uber app runningUber is an app-based ride service, which operates around the world (file). Photo: Public domain
The company’s annual report shows that in 2014 the alternative taxi business’ costs totalled more more than $970,000, leaving it a pre-tax profit of $33,500. Uber’s expenses in this country include $231,000 on staff costs and more than $500,000 on mobile devices and fees.
A spokesperson for Uber New Zealand said the company complied with all its New Zealand tax obligations. In the 12 months to the end of December 2014, Uber New Zealand earned $1,061,018 in revenue from its parent company based in the Netherlands. That was a fee paid to it for marketing and support services. Auckland-based tax consultant Terry Baucher told Checkpoint with John Campbell Uber appeared to have fine-tuned the use of a system known as ‘double-Dutch’ accounting.
