France demands 1.7 bn euros in payroll taxes from Uber: media report / Photo: © AFP
France demands 1.7 bn euros in payroll taxes from Uber: media report
Ride-sharing group Uber has been told by French authorities that it owes 1.7 billion euros ($2 billion) in unpaid payroll taxes, according to a media report Monday.
Uber avoided paying the taxes by misrepresenting its contracts with its French drivers, according to online publication Revue21, in the US company's latest dispute in Europe over the status of its drivers.
In a 142-page document seen by Revue21, the unit collecting social charges in the Paris region concluded that Uber "knowingly disguised an employment relationship as a business contract to evade its obligations as an employer" to some 71,000 drivers between 2019 and 2022.
Uber France had declared in its 2024 financial statements that in December 2024 the French social security agency Urssaf had "filed a lawsuit against the company, proposing a revision of the calculation of social security contributions".
Urssaf is an independent body that collects social charges from both companies and employees to fund France's state-run retirement accounts, unemployment insurance and medical coverage.
Uber "firmly" contested the basis of this lawsuit in a response to Urssaf, which itself "responded by maintaining its position", according to Uber's 2024 financial statements.
It said it was unable to estimate the potential cost of Urssaf's demand and was therefore not setting aside provisions.
In the document cited in Monday's report by Revue21, Urssaf said that "under the guise of a simple booking platform, Uber is in reality bound to drivers by a legal relationship of subordination", noting its triple power of management, control and sanction over drivers.
Urssaf declined to comment when contacted by AFP.
"Regarding the status of drivers, recent rulings by the Court of Cassation have confirmed their independent contractor status and thus clarified the framework within which we operate," an Uber spokesperson told AFP, referring to two rulings issued in July 2025 by an appeals court, which refused to reclassify drivers as Uber employees.
"We are currently in discussions with Urssaf and are fostering a collaborative, open, and transparent approach," the Uber spokesperson added.
According to Revue21, Urssaf estimates that Uber avoided 1.2 billion euros in payroll taxes, to which it added 512 million euros in "recovery surcharges".
Q.Phillips--VC
