Uber should be recognized as 'distinct service,' company says

The general manager for UberQuebecsaysthe provincial government's coming legislation should recognize theride-hailing service has a "distinct model" in comparison to the taxi industry.

Jean-Nicolas GuillemettesaysUber will halt operations inthe province if the new rulesgotoo far.

"The goal is to stay here and offer the same service we've been offering for two years," Guillemette toldCBC Montreal's Daybreak on Friday.

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The legislation, which isdue to be tabled May 12,is expected toinclude stricter licensing feesand forcethe company and its drivers hand over more tax revenue.

"Clearly,what [Transport Minister Jacques Daoust]wants to do is to shut us down. The way he wants to regulate us is the same as thetaxi industry is regulated," Guillemette said.

Debate over sales tax

Uber Quebec defends its tax record

8 years ago

Duration 1:40

Jean-Nicolas Guillemette, general manager for Uber Quebec, says the company respects all of its fiscal obligations. He added that the service's drivers are treated as independent contractors and have a tax exemption if they make less than $30,000 a year.

As it stands, the company does not requiredrivers of its most popular service,UberX, to have a tax number for GST and Quebecsales tax collection.

Drivers for the serviceare treated as independent contractors and aren't required tohave a taxi licence.

Daousthassaid both the company and its drivers have a responsibility to fully declare their revenues and if they comply, the company won't have to leave.

"If they want to respect the laws, if they want to pay taxes then they are most welcome,"Daoustsaid earlier this month.

On Daybreak, Guillemettesaid the majority of Uber drivers in Quebec about 75 per cent work less than 20 hours a week and therefore don't make enough annually to register and collect tax.

"There is a tax exemption if you make less than $30,000 and this is what we are doing," he said.

"If the government wants to change that, we are definitely open to collaborating on that."

Guillemetteadded thatUberXdrivers shouldn't be required to pay for a permitor it wouldn't be worth it.

"When you drive five to10hours for a few weeks on the platform for a few weeksbecause you need to pay your bills, ifwe are asking you for example to pay $300, theywon'tdo it," he said.

Profits moved to the Netherlands

Uber has also drawn criticism for its corporate tax structure, with some accusing the company of shielding profits in a "tax haven."

Guillemette saidUber's international operations, like that of many other technology companies, arebased in the Netherlands.

"There is afiscal pactbetweenCanada and the Netherlandsand we respect this fiscal pact, and we pay all the taxes that are needed to be paid in Canada," he said.

Guillemette said other jurisdictions in Canada have regulated Uber in a way that works and he wants Quebec to follow their lead, rather than that of Calgary.

In February, Uberceased operations in Calgary after the city passed abylaw requiring an annual$220 driverlicensing fee, along withstricter requirements forbackground checks and vehicle inspections.

• Calgary allows Uber in theory but company says it can't operate under new bylaw

"Edmonton, Ottawa and Toronto have regulated us in a way we can operate," he said.

"Calgary decided to regulate us in a way we can't. And they were aware of it."

The company is holding a "save Uber in Quebec" rally at noon today, while a taxi drivers are taking part in a rival anti-austerityprotest.