Private ruling: Ride-sourcing
Date of advice: 16 May 2018
Published: July 2018

Ruling: Q1: Can the ATO provide you with an exemption from registering for GST because the income you earn from ride-sourcing is paid into the bank account of a charity? | A1: No

Relevant facts and circumstances: You registered with a ride-sourcing platform in your individual capacity and commenced providing ride-sourcing services. You have your earnings paid into the bank account of a charity (the charity). The charity is registered for GST and you believe that the amounts received from your ride-sourcing work are reported by the charity. You state that you are a monk and have taken a vow of poverty. Additionally, you believe that income tax law cannot supersede your spiritual and religious vows.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Division 9

Reasons for decision: Summary: Currently, the platform you contracted with only allows individuals to enter into a contract to use the platform. There is no contract between the platform operator and the charity to enable the charity to use the platform to provide taxi travel. There is also no contract between passengers and the charity in relation to the taxi travel. The direct relationship with the platform operator and the obligations under the contract with them (to which you agreed to when signing on to being a driver) are the primary considerations when characterising the arrangement. This is because the obligations under the platform contract are not assignable by either party. As the charity has no obligations pursuant to the contract it is incapable of providing a supply of taxi travel to passengers (or any other supply). While you may have provided the bank details of the charity to the platform operator for payment, the charity is not the 'entity' supplying taxi travel. Therefore, as an individual driver you are personally providing the ridesharing services to your customers (passengers) through the platform and you have the obligation to declare any income received in your yearly tax return and report your GST obligations. This applies even if you operate your ride-sourcing activities on a casual basis to supplement your income from another job or other business activities. In your discussions with the ATO you also stated your belief that taxation laws could not supersede your religious and spiritual vows. In Church of the New Faith v Commissioner of Pay-Roll Tax (Vic) ("Scientology case") [1983] HCA 40; (1983) 154 CLR 120, Mason ACJ and Brennan J stated (at 135-136): ... the area of legal immunity marked out by the concept of religion cannot extend to all conduct in which a person may engage in giving effect to his faith in the supernatural. The freedom to act in accordance with one’s religious beliefs is not as inviolate as the freedom to believe, for general laws to preserve and protect society are not defeated by a plea of religious obligation to breach them: [...] Religious conviction is not a solvent of legal obligation. [...] Conduct in which a person engages in giving effect to his faith in the supernatural is religious, but it is excluded from the area of legal immunity marked out by the concept of religion if it offends against the ordinary laws, i.e. if it offends against laws which do not discriminate against religion generally or against particular religions or against conduct of a kind which is characteristic only of a religion. [ my emphasis ] As the High Court makes clear in the passage above, your religious beliefs cannot override your legal obligations under the taxation law. In conclusion, you have the taxation liabilities and obligations for the ride-sourcing services you provide. For taxation purposes, having your ride-sourcing earnings paid directly to the charity has no effect upon your personal obligations under the law. There is no exemption that can be applied to your circumstances.