Uber under tax investigation by IRS, foreign authorities | TribLIVE.com

Uber under tax investigation by IRS, foreign authorities


Uber Technologies Inc. is under investigation from U.S. tax authorities and said that its potential tax charges in a number of key markets could change.

The recently-listed ride-hailing company said in a filing Tuesday that the IRS is examining the tax years for 2013 and 2014. Uber also added that it is under examination by other state and foreign tax authorities, and that its tax benefits are to be cut due to the company’s “transfer pricing positions.”

Uber gained 2.6% at 9:34 a.m. Tuesday in New York as broader stock indexes recovered from the previous day’s sell-off. The stock was down 8.3% from the IPO price of $45 through Monday’s close in New York.

Transfer pricing concerns the transactions of goods and services among corporate subsidiaries, and has sometimes been seen as ways to shift income to low-tax jurisdictions. In 2017 European authorities fined Amazon.com Inc. $294 million for booking profits in a tax free unit located in Luxembourg that was meant to license the technology behind its web shopping platform.

While Uber said it believes it has adequate amounts that have been reserved in the relevant jurisdictions, tax years from 2010 to 2019 could be adjusted in a number of its key markets, including the United States, United Kingdom, the Netherlands, and India.

A spokeswoman for the company didn’t immediately respond to a request for comment.

Uber announced its first quarterly results as a public company last week, posting first-quarter sales near the high end of its previously disclosed preliminary results. The company also reported a $1.01 billion quarterly loss, among the largest of any public company.

Uber’s first quarter gross unrecognized tax benefits rose by $1.3 billion. In Tuesday’ filings, it said it expects the gross amount of unrecognized tax benefits to be reduced by at least $141 million over the next year.

Uber’s reveal of its IRS investigation arrived the same morning analysts at the ride-sharing company’s banks began research coverage of the San Francisco-based company with buy ratings.

Categories: Business
TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.