Grab refuses to pay Uber’s tax arrears

11:47 | 06/04/2018

Grab refused to pay the VND53.3 billion ($2.33 million) tax arrears that Uber owes to the Ho Chi Minh City Department of Taxation.

grab refuses to pay ubers tax arrears
Grab has no intention of shouldering Uber's tax arrears

“Paying the arrears is the obligation of Uber because Grab did not buy Uber’s legal standing, which is the representative of Uber Vietnam to deal with the Ho Chi Minh City Department of Taxation. Contact uber if you have any question related to this problem,” a representative of Grab Vietnam told Vnexpress.

Despite the fact that the deal is taking place outside of Vietnam, the two firms still need to discuss tax obligations because they conduct business in Vietnam.

A leader of the tax department told Vnexpress that the authority asked Grab to report about the merger between the two firms, but has yet to receive a reply. Whether Grab has to shoulder Uber’s tax obligations depends on the terms of the purchase contract.

“On the other hand, after the deal is completed, Grab will be obligated to report and declare transfer tax,” the leader of the tax department added.

Commenting on this case, lawyer Doan Van Hau stated that Grab’s refusal to shoulder the tax arrears of Uber goes against both international and Vietnamese regulations.

Notably, according to Article 195 of the 2014 Law on Enterprises, after the acquired company ceases to exist, the acquirer will inherit the legal rights and interests as well as unpaid debts, employment contracts, and other liabilities of the acquired company.

Hau added that despite the fact that the deal is taking place outside of Vietnam, the two firms still need to discuss tax obligations because they conduct business in Vietnam.

Ha Vy

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