Nation & World

Uber under tax investigation

IRS, foreign authorities' probes could affect its taxes

Bloomberg

While Uber said it believes it has adequate amounts that have been reserved in the relevant jurisdictions, tax years from 2010 to 2019 could be adjusted in a number of its key markets.
Bloomberg While Uber said it believes it has adequate amounts that have been reserved in the relevant jurisdictions, tax years from 2010 to 2019 could be adjusted in a number of its key markets.

Uber Technologies is under investigation from U.S. tax authorities and said its potential tax charges in a number of key markets could change.

The recently listed ride-hailing company said in a filing Tuesday that the Internal Revenue Service is examining the tax years for 2013 and 2014.

Uber added that it is under examination by other state and foreign tax authorities, and that its tax benefits are to be cut due to the company’s “transfer pricing positions.”

Transfer pricing concerns the transactions of goods and services among corporate subsidiaries, and has sometimes been seen as ways to shift income to low-tax jurisdictions.

In 2017, European authorities fined Amazon.com $294 million for booking profits in a tax free unit located in Luxembourg that was meant to license the technology behind its web shopping platform.

While Uber said it believes it has adequate amounts that have been reserved in the relevant jurisdictions, tax years from 2010 to 2019 could be adjusted in a number of its key markets, including the United States, United Kingdom, the Netherlands and India.

Uber’s reveal of its IRS investigation arrived the same morning analysts at the ride-hailing company’s banks began research coverage of the San Francisco-based company with buy ratings.

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