Recently, the Demark Authority has issued tax letters to nearly 1200 Uber drivers who are found in avoidance cases during tax year 2014 and 2015. The total amount required by the tax authority reaches 11.3 million Danish crowns ($1.86 million). Sometime earlier, the Danish Finance Minister indicated that Danish tax authority has started a study on sharing economy taxation.
Uber stepped into Danish market in 2014, but a new law introduced in 2017 February comes up with more stringent requirements on taxes, including mandatory fare meters and seat sensors, which drove the company out. Based on information provided by the Dutch authorities, the Danish authority opened an investigation and found 1192 out of the 1195 of former drivers failed to pay taxes on their income properly during 2014 and 2015, and 154 cases are to be further investigated to determine additional penalties. "There must be room for new digital services to operate in Denmark. But one of the prerequisites is that, for example, drivers pay taxes like everyone else who earns money in this country,” according to Denmark’s tax minister Karsten Lauritzen.
There were thousands of Uber drivers in Denmark who tried to get access to economic opportunities, and Uber has “always informed them of their fiscal duties”. “We support regulations that help self-employed people meet their tax obligations as has been rolled out by the Danish government,” the company said.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):