CRA SUED UBER IN BID TO AUDIT COMPANY

CRA SUED UBER IN BID TO AUDIT COMPANY

Uber still has its hands full in Canada as the company continues to stir up a myriad of controversies. After running afoul of municipalities around the country, the ridesharing giant also faced the brunt of the Canadian government and was sued for failing to comply with an audit request.

CRA sued Uber (Ridesharing company) in bid to audit company
CRA sued Uber (Ridesharing company) in bid to audit company

The government had been attempting to carry out an audit on Uber Canada since last February, but the company did not respond to the income tax check. 29 requests were then sent since after initial call, and Uber has ignored 13 of those requests, while only offering partial responses to 16. In all instances the Canadian Revenue Agency (CRA) says Uber failed to hand over its books for official inspection.

After granting numerous extensions on the deadline, the government patience wore thin and in October the CRA took Uber to court in a bid to force the company to open its books. Uber, for its part, says that the requests were for routine audits and that is complied with the CRA at every opportunity, despite CRA accusations that the company offered “excuses” for why it could not produces its financial details.

“The Minister sought and continues to seek the respondent’s books, records and documents in order to determine whether (Uber) has complied with its duties and obligations under the Income Tax Act and properly computed and reported taxable income,” reads the filing.

Uber says the court action was filed the same day as the deadline, October 16, and that was the day the company sent its books to be audited. Arguably the U.S. based ride-sharing giant was correct, as the court filing from the CRA was dropped 11 days after it was initiated.

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