Serious Taxman Calls on Grab, Uber Drivers (17 Sept 2017 )

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A passenger getting off a private-hire car at the taxi stand of International Plaza. PHOTO: ST FILE


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Taxman calls on Grab, Uber drivers



Christopher Tan, Senior Transport Correspondent


Ride-hailing firms working with Iras to enable those driving for them to e-file their returns




Dodging the taxman will become more difficult in the gig economy, as going cashless allows for better electronic tracking of payments. And the taxman has his sights next on Uber and Grab drivers.

The Sunday Times understands that the Inland Revenue Authority of Singapore (Iras) has approached the two ride-hailing firms, which have amassed over 40,000 drivers since arriving here in 2013, to work out an arrangement for the drivers to file their tax returns automatically. Doing so also limits their ability to underdeclare earnings.

Unlike cabbies' earnings, the takings of ride-hailing drivers are captured by their respective phone apps.


An Iras spokesman said: "To simplify tax filing and ease compliance for our taxpayers, Iras continually seeks ways to explore initiatives with third parties and platform providers to automate the transmission of income information directly into our tax systems."

She said the authority has done the same for property and insurance agencies. "Likewise, Iras is collaborating with Uber and Grab to make it more convenient for drivers with pre-filling of their income information in their electronic tax form."


When e-filing is available, the tens of thousands of Uber and Grab drivers will be unable to avoid paying taxes or under-declaring what they earn.


Driver Elliot Lin, 32, said: "If you have to pay, you have to pay."

Mr Lin said he is driving part-time, and the extra income he draws from driving would mean "an incremental tax increase of less than $100".

Not so for others. A 50-year-old who drives for Grab and Uber and claims to be drawing around $9,000 a month said: "This is going to be a problem. Not just for me. I think a lot of drivers will have an issue. I don't think self-employed people declare their full income.

"I'm very shocked. I may go back to driving taxis."

While there is no similar arrangement for cabbies - who accept mostly cash fares - ST understands that once Singapore goes cashless, taxing taxi drivers according to their actual take-home pay should become more feasible.

Likewise, hawkers, market stallholders and other business people may not be able to dodge the taxman once cashless payments become the norm.

Iras is also reaching out to others in the so-called "sharing economy", which includes people who rent out their homes - fully or partly - via platforms such as Airbnb. Iras said it has made available information on its website on "the taxable income of those in sharing economy".

As for Uber and Grab themselves, Iras said companies are liable for corporate tax on any income just like any other company operating in Singapore. Both Uber and Grab said they were working to comply with Iras' requests.

Singapore University of Social Sciences economist Walter Theseira said: "It's only fair that people pay the same income taxes regardless of whether the money was earned through self-employment or wage employment."

He added that it was more important to look at Central Provident Fund contributions. "Self-employment through private-hire or taxi-driving is excessively attractive financially because drivers do not have to pay CPF contributions.

"This raises their take-home earnings significantly... While this may appear 'good' in the short run, it puts the drivers at risk of not being able to finance their homes, or support themselves in retirement," he said.

A version of this article appeared in the print edition of The Sunday Times on September 17, 2017, with the headline 'Uber, Grab drivers in taxman's sights'.



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http://www.straitstimes.com/singapore/transport/uber-grab-drivers-in-taxmans-sights
 
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Christopher Tan now asking Uber and Grab drivers to become Taxi Drivers.
 
I don't think self-employed people declare their full income.

If the situation gets any worse, we should consider banning $50 or $100 notes like what kelingland did recently. I bet many of these tax dodgers have cash piles in milo tins at home.
 


If the situation gets any worse, we should consider banning $50 or $100 notes like what kelingland did recently. I bet many of these tax dodgers have cash piles in milo tins at home.

Just pass a law to give PAP the power to search milo tins in all sinkiepore homes. Definitely, we can do better than North Korea!
 
One of the advantages of singkieland is that the income tax rates are low./...most do not pay tax not like in Oz,,work 5 days and 1 day go to tax and with benefits being minimised,,,,the tax is even higher now,,,,so for the gahmen to go after grab and uber,,,I mean do those drivers really earn 10K a mth? singkieland gets most of its revenue through COEs and selling land and of course GST,,with GST,,,income tax etc is supposed to be minimised,,,now go after these income tax thing,,I guess pappies are getting greedier to cover up Ho Jinx investment losses
 


If the situation gets any worse, we should consider banning $50 or $100 notes like what kelingland did recently. I bet many of these tax dodgers have cash piles in milo tins at home.

I have.....you wanna come & check?...I live in Yishun....I keep mine in Ovaltine Tins, Jacob Biscuit tins....in bundles of $50....but you have to clear with my security detail downstairs first...
 
They should tax those bloody 'bloggers' / 'influencers'. These clowns take so many free sponsored products and those are not cheap.
 
ditto for all epaymet merchants. Big or small will kenna pay. If my Char Kway Teow man is stupid enough to go cashless, his income tax bill is going to be fun.
 
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