National Focus

Court suspends Uber lawsuit against Tax Department

By Thach Mien January 04, 2018 | 03:23 PM GMT+7

The Ho Chi Minh City People’s Court has decided to suspend Uber B.V.’s lawsuit against the Ho Chi Minh City Department of Taxation, allowing the Tax Department to resume coercive enforcement measures to collect over VND53 billion (US$2.3 million) of Uber’s unpaid taxes.

Uber only paid US$585,665 in tax arrears.

According to the court’s decision, on December 20, 2017 Chu Xuan Binh, the legal representative of Uber Vietnam Co., Ltd. signed and stamped the petition against the Tax Department to send to the court. However, according to the Power of Attorney certificated on January 7, 2016 and notarized on November 09, 2016, there is no content showing that Uber B.V. authorized Uber Vietnam to file the lawsuit.

Uber Vietnam, the petitioner in the lawsuit, does not have a legitimate legal status, thus, the municipal court decided to suspend the lawsuit.

However, Uber B.V. other than Uber Vietnam, still has the right to litigate the lawsuit. Besides, Uber Vietnam can also appeal within seven days of receiving the court’s decision, the court added.

Previously, by the deadline of December 23, 2017, Uber only paid VND13.3 billion (US$585,665) out of the VND66.68 billion (US$2.94 million) in tax arrears, the Tax Department, therefore, decided to enforce payments from Uber B.V.

Accordingly, the Tax Department requested five commercial banks to suspend Uber B.V.’s accounts for 10 days. The fares paid to Uber via bank account would be sent to the Tax Department’s account instead of being transferred abroad to Uber B.V.

Uber took the Tax Department to court and the Ho Chi Minh City People’s Court, after considering Uber’s petition, asked the Tax Department to suspend enforcement measures until the final judgment of the court was given.

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