Homepage > News > Uber uses 50 shell companies to avoid paying taxes

Uber uses 50 shell companies to avoid paying taxes

Australian research institute CICTAR found that Uber siphoned off about $ 5.8 billion from the Netherlands, through 50 shell companies, without paying taxes.

The study was commissioned by the Dutch trade union federation FNV, which is campaigning to increase the rights of Uber’s drivers and suppliers. As a result, an intricate legal structure has been exposed that helps a corporation save billions of dollars in unpaid taxes.

This is the Champions League of Tax Avoidance. This is all legal and completely amoral at the same time – said Jason Ward, CICTAR chief analyst, in an interview with a Dutch magazine De Groene Amsterdammer.

Dutch structure for tax avoidance

The Dutch Uber trail was in 2019 when the company transferred its intellectual property rights, previously registered in Bermuda, which was done by “selling” them to a controlled subsidiary, which was financed through a $16 billion loan. It was contracted with Uber’s Singapore parent company.

CICTAR says the move will allow the corporation to report less taxable income. Increasing interest on the loan will make it less than $ 1 billion a year for the next 20 years. Despite achieving a global revenue of $ 5.8 billion in 2019, Uber’s Dutch subsidiaries recorded $ 4.6 billion losses on paper.

They are the formal owner of the technology behind the company’s applications, so theoretically, all its profit is generated in the Netherlands. Thanks to the loan and the network of companies, the place where the money goes is Singapore, which is considered a tax haven for large corporations.

Uber’s fluid business model

CICTAR researchers also highlighted that Uber managed to avoid many regulations by failing to classify as a transport company, so it does not have to hire its employees or comply with banking regulations. All this is factual that, in practice, the company’s employees are millions from people around the world, and temporary transfers, making it an international bank.

Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.


Last news:

Energy crisis in Europe:

Energy crisis in Europe: More companies in the sector go bankrupt

Every day, energy costs hit new records. At the same time, financial burdens in various ...
Read More
eToro with a 66% increase in commission income in the third quarter of 2021

eToro will close the fourth quarter with approximately $290 million in commission income

EToro, which is on track to go public in the United States through its merger ...
Read More
Will China live up to the trade promises made to the US?

Will China live up to the trade promises made to the US?

The signing of a trade agreement between China and the US in January last year ...
Read More
fpmarkets broker adds 550 CFDs per stock

FP Markets is expanding its offer with more assets

The FP Markets broker has expanded its offer with new products available on the MT4 ...
Read More

Add a comment

Your email address will not be published. Required fields are marked *


Note: Opinions and posts on represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. assumes no responsibility or liability for such content.
Go to top