FILE PHOTO: A man walks past under an Uber logo in Mexico City, Mexico February 6, 2018. REUTERS/Carlos Jasso/File Photo
After months of setbacks, Mexico is now on the cusp of rolling out an automatic tax payment system that forms a key part of its effort to crack down on evasion. And the government scored a marquee name – Uber Technologies Inc – to be its first participant, according to a person familiar with the negotiations.
For Mexico, it’s a big get. The country has been looking for ways to boost tax collection that’s the worst among members of the Organisation for Economic Cooperation and Development, a result of an economy that remains largely informal. Uber is a key ally – it dominates more than 80% of the market in Mexico, according to Dalia Research, and it also likely has many drivers and restaurants who don’t properly report or pay income tax. For Uber, the once-combative tech giant, it’s a test to a new strategy of offering more gestures of cooperation to governments.
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