Toronto – Uber’s ridesharing and food delivery services in Canada will move to Canada with a focus on the Netherlands – which will affect the tax bill.
San Francisco, a California-based tech company, said the change to its Canadian operations would take effect July 1 and Uber would be sent to the government to collect sales tax.
The change will not result in new fees for most restaurants, drivers or couriers, but the current fares are subject to GST, BST and HST and the company may introduce a sales tax on its users of Eat Pass subscription.
This change will allow restaurants, drivers and couriers to claim tax credits, and they and other Uber app users will be able to sign new deals with Uber’s new Canadian businesses.
The company said it plans to move its Canadian operations to the Netherlands from 2018 and has already taken similar steps in Australia-New Zealand and the Europe, Middle East and Africa regions.
Uber began to consider the move after Ontario filed a class action lawsuit against Uber Eats driver David Heller in 2017.
Heber believed in recognizing drivers as employees and providing them with minimum wage, vacation pay and other protections under the Employment Standards Act.
Uber disputed the case because it contained a contractual clause that all disputes were to be settled in the Netherlands, and it was attached.
The lawsuit was likely funded by the Supreme Court of Canada, which ruled in favor of the plaintiffs in 2020.
Uber changed its dispute resolution rules to allow arbitration in a driver’s province or region, but Samar Belitsky, LLP employment lawyer for Sambru Dumar, said Uber’s new contracts still contain legal provisions that drivers doubt could increase.
Belitsky, which is part of Samfru Dumarkin LLP, which will pursue class actions, is sending new contractual frameworks and asking them to agree not to take a class or class action lawsuit against Uber – which was also stated in their previous contract.
Uber wants drivers to agree to resolve their issues through a referee or face-to-face, but is providing guidelines for deviating from that rule, Belitsky said.
“The discrepancy information is at the end… it’s a lot more legal, so for most Uber drivers they don’t even see it,” Belitsky said.
“They don’t realize that their rights are being violated.”
He recommends that anyone who is asked to sign a new contract read it carefully.
The company, which began alerting its users to the changes on Wednesday, offers support taxes and tax resources to everyone involved.
This Canadian edition report was first published on June 24, 2021.
Tara Deshchamps, The Canadian Press