The Sunday Times understands that the Inland Revenue Authority of Singapore (Iras) has approached the two ride-hailing firms, which have amassed over 40,000 drivers since arriving here in 2013, to work out an arrangement for the drivers to file their tax returns automatically. Doing so also limits their ability to underdeclare earnings.
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Unlike cabbies’ earnings, the takings of ride-hailing drivers are captured by their respective phone apps.
An Iras spokesman said: “To simplify tax filing and ease compliance for our taxpayers, Iras continually seeks ways to explore initiatives with third parties and platform providers to automate the transmission of income information directly into our tax systems.”
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She said the authority has done the same for property and insurance agencies. “Likewise, Iras is collaborating with Uber and Grab to make it more convenient for drivers with pre-filling of their income information in their electronic tax form.”
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When e-filing is available, the tens of thousands of Uber and Grab drivers will be unable to avoid paying taxes or under-declaring what they earn.