WATCH ABOVE: A Toronto City Councillor is asking the federal government to investigate Uber on accusations of dodging tax laws. Mark Carcasole reports.
TORONTO – Toronto city councillor Jim Karygiannis wants the taxman to investigate why UberX drivers don’t collect HST from its customers.
The councillor said he has written a letter to the Canadian Revenue Agency requesting a clarification on the ride-sharing company’s questionable practices.
“I am totally shocked and surprised that a Canadian corporation is able to get away without charging and paying GST or the HST,” Karygiannis argued.
“Once again, it appears that Uber is skirting Canadian laws and regulations.”
READ MORE: Ontario court sides with Uber in legal battle with City of Toronto
In an email response, Uber Canada spokesperson Susie Heath said there is indeed a tax and that it is up to individual drivers to collect and remit the tax.
“80 per cent of fares for Uber trips go to local and independent driver partners who must file their HST obligations,” she wrote.
“As a registered Canadian business, Uber Canada pays all applicable taxes and we regularly communicate to driver partners on how to file their HST as applicable.”
VIDEO: Toronto councillor warns Uber riders could be fined $20,000
Karygiannis, a vocal opponent of Uber, warned Pan Am Games visitors last week not to use the popular ride-hailing service or risk a fine of up to $20,000.
The councillor insists Uber drivers are unlicensed taxis and a person who arranges for a ride in an unlicensed taxi is guilty of an offence under Ontario’s Highway Traffic Act.
READ MORE: Uber operating outside of the current law: Mayor John Tory
However, Uber says the Highway Act is written to capture people arranging rides and does not pertain to passengers.
Karygiannis’ latest attack comes two weeks after city council voted to review taxi regulations and begin strict enforcement of bylaws.
As of last week, the city’s Municipal Licensing and Standards office said there have been more than 70 charges against 36 UberX drivers.
The charges stem from the failure to submit a vehicle for approval by Municipal Licensing and Standards and a lack of a licence for a limousine owner.
Uber has promised to pay for any tickets and fines incurred by its drivers.
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