Ensure Uber, Grab also comply with tax laws

Every taxpayer, be it a corporate entity or an individual, should be compliant with tax laws (Uber, Grab drivers in taxman's sights; Sept 17).

I applaud the Inland Revenue Authority of Singapore (Iras) for its latest initiative.

However, I wonder if the same focus has been placed on Uber and Grab themselves.

The current Uber and Grab business model appears to use aggressive rider promotions as well as driver incentives.

Do these exceed the operational revenue the companies get from the 20 per cent commission from each trip? If so, does this mean they have no tax liabilities? Is this not anti-competition, since their direct competitors cannot employ the same strategies?

I hope Iras will look into this and not just focus on the drivers.

Cho Hon Loon

The current Uber and Grab business model appears to use aggressive rider promotions as well as driver incentives.

A version of this article appeared in the print edition of The Sunday Times on September 24, 2017, with the headline 'Ensure Uber, Grab also comply with tax laws'. Print Edition | Subscribe