So what was the flavour. I liked their new caramel milk that was nice but very sweet.

jonb:

 

A better way for Uber to help feed hungry kids would be to pay it's NZ taxes, rather than having an extremely elaborate tax evasion scheme:

 

Uber NZ earns $1m, pays $9000 in tax

 

Yeah what is that all about with these overseas companies structuring their businesses this way in NZ.  Although legally they pay all the taxes they are required to.

But I don't think giving kids luxury ice cream is the greatest promo, as we already have an obesity problem. Why not instead give them a bag of apples, which the whole family can eat over the week, which will be about the same price, or something just as healthy.  I decided not to participate in this because I don't agree with the promotion.  Although I do like the overall idea behind Uber, and how it is a business that is disrupting the old taxi business model.

Mspec:

 

So what was the flavour. I liked their new caramel milk that was nice but very sweet.

 

Strawberry

Uber was well described in something I read recently.

They pointed out that aside from the fact that there is an app, it's just a ride in a stranger's car, driven by a stranger who may or may not be able to drive well etc etc.

It's true - the willing suspension of disbelief the app creates is magical indeed.

Likewise when I get in a cab. There are some appalling drivers out there.

jonb: Uber NZ earns $1m, pays $9000 in tax

jamesrt:

jonb: Uber NZ earns $1m, pays $9000 in tax

I've seen this 'fact' repeated a lot since Labour released it; and it makes me angry or disappointed.

Angry that Labour are either deliberately trying to mislead the country, or disappointed that their finance spokesperson obviously doesn't understand finance.

Company Tax in NZ is due on PROFIT, not REVENUE. Uber may have revenue of $1m; but they will have costs [I.e. actually paying their drivers for a start!]. Therefore, profit will be less. Probably much less.

And a Finance Spokesperson who wanted to be taken seriously would know that.

If you are going to make statements like that you need to be better informed about the way that Uber structures it's business. Uber New Zealand does not pay the drivers, it is done by another subsidiary based in Holland. Not all of the balance comes back to Uber New Zealand.

The reality of international business is that international corporates can manipulate license fees and transfer pricing to pay whatever level of tax they feel like. While they are paying the amount of tax they are legally obligated to pay that doesn't mean it is the amount of tax that they should really be paying based on their true costs and revenue.

This planned tax avoidance has been well reported internationally and in New Zealand. I would be interested on whether you think that the spokesperson is being reasonable based on reading the extensive reporting on the way that global companies structure their businesses to minimise tax exposure.

http://fortune.com/2015/10/22/uber-tax-shell/

http://www.radionz.co.nz/news/national/308581/uber's-'extremely-elaborate'-tax-arrangements

Handle9: I would be interested on whether you think that the spokesperson is being reasonable

jamesrt:

Handle9: I would be interested on whether you think that the spokesperson is being reasonable

*I* know that the situation is not clear-cut; and I don't want to sidetrack this thread onto a political rant.

But at a high level, no I don't think Robbo was making a "reasonable" statement by making a comment that was either misleading (as in "would cause a large number of NZers to be mislead by") OR at a high level, factually inaccurate (as in "income tax is NOT based on Revenue"). Never mind the $1m revenue would have attracted at least $130,434 in GST (assuming $1M including GST).

I'm not going to comment further on these points in this thread.

His statement below doesn't read that way to me but I guess other people could interpret it in ways that suit them. (source)

Uber needs to explain how it paid only $9000 in tax when it earned $1m in revenue and is one of the fastest growing companies in the country, says Labour’s Finance spokesperson Grant Robertson.

“Uber New Zealand appears to be using the infamous ‘double-Dutch’ method of getting out of paying tax here by loaning large amounts of revenue to its parent company and others.

“That might not be illegal but it is unethical and shows the murky world of international tax. This is why we need to take action on multinational tax avoidance. The Government can’t just sit on its hands and leave it to the OECD.

“In the meantime the IRD should take a close look at Uber’s tax arrangements. Working people who pay their tax every week need to know the Government is on their side and cracking down on those who don’t pay their fair share,” says Grant Robertson.