Uber loses Australian tax appeal, faces $81m bill

The Australian High Court has ruled that Uber will pay 81 million Australian dollars in payroll tax to the New South Wales tax office, dismissing the company's appeal against the tax assessment. The ruling, delivered on Wednesday, found that payments made to Uber's drivers qualify as wages under the relevant tax laws. This decision overturns Uber's position that it was merely a payment collection agent and not a direct employer of its drivers.

The High Court found that there was a direct relationship between the services provided by the drivers and the fares they received, meaning the fares qualified as wages. Uber had argued that it should not be subject to payroll tax because its business model involved collecting payments from riders and retaining service fees. However, the court disagreed, stating that the company's business model depended on collecting payments from riders for each trip and that drivers provided the services necessary for Uber to earn those fees.

Uber expressed respect for the court's decision but maintained that digital marketplaces should not be required to pay payroll tax. The Transport Workers' Union welcomed the ruling, describing it as a "critical reality check" to companies attempting to avoid their tax obligations. The NSW Finance Minister also welcomed the decision, emphasizing that Uber should pay their fair share of payroll tax.