Should Uber drivers be considered employees for South African income tax purposes?

Journal of Economic and Financial Sciences


 
 
Field Value
 
Title Should Uber drivers be considered employees for South African income tax purposes?
 
Creator Hussein, Mariam Parsons, Shaun Mabutha, Riyaan Zietsman, Magdel
 
Subject employee; employees’ tax; gig economy; independent contractor; taxation; Uber
Description Orientation: Uber is a leader in the gig economy both internationally and in South Africa. One of the key elements of Uber’s business model is that drivers operate as independent contractors rather than employees. Whilst this may reduce costs, it may also negatively affect tax collection.Research purpose: This study considers whether Uber drivers should be classified as employees or independent contractors in South Africa for employees’ tax purposes.Motivation for the study: As the gig economy expands, uncertainty exists as to how traditional approaches to taxation apply and the extent to which they remain appropriate to new business models that have non-traditional relationships with their participants. This is evident by the extent of disputes arising internationally, and particularly in the United States of America (USA), where Uber was founded.Research approach/design and method: This study engages in comparative legal research to determine the extent to which attempts to resolve this question in the USA may inform the South African context.Main findings: The lack of consistent classification outcomes in the USA suggests that it may be difficult to reach a conclusive classification of Uber drivers in South Africa for employees’ tax purposes using the current tests. Whilst these tests may be adapted, this study supports calls for rethinking the link between tax collection and traditional employment relationships.Contribution/value-add: This study contributes to the development and interpretation of South African tax legislation in the context of new technologies and business models, and provides recommendations for rethinking the approach to tax collection in these contexts.
 
Publisher AOSIS
 
Contributor None
Date 2021-11-22
 
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion —
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/jef.v14i1.685
 
Source Journal of Economic and Financial Sciences; Vol 14, No 1 (2021); 12 pages 2312-2803 1995-7076
 
Language eng
 
Relation https://jefjournal.org.za/index.php/jef/article/view/685/1354 https://jefjournal.org.za/index.php/jef/article/view/685/1355 https://jefjournal.org.za/index.php/jef/article/view/685/1356 https://jefjournal.org.za/index.php/jef/article/view/685/1357
 
Rights Copyright (c) 2021 Mariam Hussein, Shaun Parsons, Riyaan Mabutha, Magdel Zietsman https://creativecommons.org/licenses/by/4.0