Uber could face huge tax bill as US and foreign authorities investigate tech giant

It's been reported that Uber is under examination by both US and foreign tax authorities.

The tech giant confirmed on Tuesday that it could face charges in some of its key markets, which includes the UK.

The news, which was reported in the Guardian, is the latest hammer-blow to hit the company, which has lost around $12bn in value since it launched its IPO in May.

Uber, which last week reported a loss of $1bn for the first quarter of 2019, stated that the Internal Revenue Service (IRS) was examining tax years 2013 and 2014.

Uber also confirmed that it is under examination by other state and foreign tax authorities. Worryingly for the company, its substantial tax advantages are to be slashed due to its “transfer pricing positions”.

Transfer pricing is usually seen as a way of shifting reported income to areas with a low-tax jurisdiction.

Uber also revealed that tax years from 2010 to 2019 could also be an issue in a number of its markets which include the US, UK, India and the Netherlands.

Uber’s initial guide price when it launched its disastrous IPO was $120bn, however the company went public at $80bn. Its current market value now sits at $69bn. However, revenues are expected to climb 24% this year to $14bn but the company is expected to lose $4.4bn. As a result customers could see Uber having to increase their prices, with fewer consumer promotions.

There are reports that some experts believe that Uber may have to double their prices, partly due to their willingness to undertake a predatory pricing initiative, whilst having the company coffers bolstered by silicon valley billionaires with the sole intent of industry dominance.

Image Source: Flickr

Image Author: Quote Catalog

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