By Basant El-Faramawy
Australia's High Court on Wednesday dismissed Uber's appeal, ruling the ride-hailing company is liable for $81 million in unpaid payroll taxes in New South Wales for the 2015-2020 tax years.
The 6-1 decision found that Uber's drivers are employees and the payments to them constitute wages under state law, rejecting Uber's argument that it does not employ drivers.
The ruling ends Uber's legal avenues and could push the total liability above $100 million for subsequent years. The majority judgment noted Uber's control over fares and its ability to deduct service fees or cancel fares entirely.
Chief Justice Stephen Gageler observed that payroll tax laws were amended to capture contractual arrangements disguising employment relationships, extending to the gig economy.
NSW Finance Minister Courtney Houssos welcomed the decision, stating that local businesses pay their fair share and Uber should too, as payroll tax funds essential services.
