NEW YORK, Nov 2 ― Uber will pay British authorities £615 million (around RM3.34 billion) to settle a tax dispute following a British judicial ruling that classified drivers as workers, the company said yesterday.
The ride-hailing company disclosed the agreement with HM Revenues and Customs as it reported third-quarter results, saying the cash payment will be sent to authorities in the fourth quarter.
The settlement is the latest ripple effect from a major March 2021 ruling by Britain's Supreme Court classifying Uber drivers as employees, rejecting the Silicon Valley company's contention that the drivers should be categorized as self-employed.
As a result of that decision, British authorities had argued that Uber was on the hook for VAT taxes for the period prior to March 2022 when it operated in the United Kingdom. Uber began paying the levy in March.
In May 2021, Uber reached an agreement with a British trade union to represent its 70,000 drivers in the UK. ― AFP
