Nassim Khadem, 8 September 2021
“Several submissions to Senate Select Committee on Job Security argued that Dutch shell companies are at the heart of Uber’s global operations.
One submission from the Centre for International Corporate Tax Accountability and Research (CICTAR) revealed that, in 2019, Uber’s top Dutch shell company, controlling more than 50 other Dutch subsidiaries, pulled in more than $US5.8 billion ($7.8 billion) in operating revenue from countries around the world, excluding the US and China.
“The direct transfer of revenue from around the world to the Netherlands leaves little, if any, taxable profits behind,” the submission said.
“The $8 billion Dutch tax shelter was created in 2019 when Uber transferred its intellectual property rights from Bermuda to the Netherlands.”
It said the sale was financed with a $16 billion loan from an Uber subsidiary in Singapore.
“The Singapore subsidiary is the immediate parent company of the Dutch shell company that controls Uber’s global empire,” the submission stated.
“Accrued interest on this loan will further reduce taxable income in the Netherlands by $1 billion a year for the next 20 years.”
It also added that, “revenue generated from Uber’s global ride-sharing and meal delivery services, excluding the US and China, accumulates in Dutch subsidiaries with limited financial reporting”.
The submission called for domestic and global rules to be changed, so that more tax revenue can be collected from Uber and other multinationals.”