Uber in Argentina accused of evading taxes for 8 million dollars

The collection agency of Argentina (AFIP) claims to Uber a debt over 358 million pesos, about 8 million dollars. Among the unpaid taxes are 147.4 million pesos of VAT and profits and 211 million pesos of social security taxes corresponding to the fiscal periods of 2016 and 2017.

Uber in Argentina accused of evading taxes. Stock image
Uber in Argentina accused of evading taxes. Stock image

The company is struggling to legally enter the Argentine market since for now it was only admitted in the province of Mendoza. In the city of Buenos Aires and its suburbs, Uber vehicles circulate without permission from local governments that in recent months aggravated the penalties for drivers.

As reported in a statement AFIP, Uber transferred the total money collected for travel abroad through a "complex international corporate network." Subsequently, the percentage corresponding to each driver returned to Argentina through at least three financial entities.

In addition, the General Directorate of Social Security Resources of the AFIP established that Uber drivers are employed in a dependency relationship and not independent workers, as the company maintains. The AFIP detected the existence of engineering of companies that make up an economic group under the terms of the Labor Contract Law.

To establish the dependency relationship, the agency clarified that the company determines the conditions under which the drivers must provide the service through the application; set the rate and the route; and, based on the passenger's qualifications, he can "disconnect" the driver, who also does not charge directly, but Uber is the one who deposits the remuneration in an account.

The inspection concluded that social security taxes were not paid by more than 16,000 drivers. This prevents these workers from enjoying the same rights as those who are registered, such as vacations, bonuses, Social Work, ART, and future retirement.

In October of last year, the City had tried to block the site of the North American company, to increase the controls and another series of procedures that until now did not have the expected results. In fact, Uber adds more than 45 thousand new users per week in Buenos Aires and has a similar number of drivers.

With the fight between taxi drivers and Uber drivers almost out of control, the government decided to try to persuade drivers with harsher penalties. That is why the City advanced with modifications to the Code of Transit and Transportation of Buenos Aires.

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