●What is in the news ?
•Uber has been using a complex tax shelter involving around 50 Dutch shell companies to reduce its global tax bill, according to recent research from the Center for International Corporate Tax Accountability and Research.
•In 2019, Uber claimed $4.5 billion in global operating losses (excluding the US and China) for tax purposes - in reality, it brought in $5.8 billion in operating revenue, according to CICTAR, an Australia-based research group.
●Things to know more
•"Uber has supercharged their tax avoidance approach," Ward a CICTAR principal analyst told Insider, using an intellectual property tax break "to prevent future tax bills, turning it into a much more useful, viable tax structure in the Netherlands."
CICTAR also found several of Uber's Dutch subsidiaries hadn't submitted mandatory financial reports, and in India, Uber paid less than a third of the 6% tax the country imposes on multinational companies, according to the report. "India is in desperate need of public revenue" to help it combat COVID-19, yet companies like Uber are able to avoid cointributing to that effort through tax avoidance schemes, Ward told Insider.