Uber is maintaing its struggle against tax office orders to pay GST, claiming that its drivers shouldn’t have to pay the tax because they are not a taxi company.

Both sides have been in the Federal Court in New South Wales in recent weeks with lawyers arguing over the definition of the American company.

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Lawyers for Uber B.V – a part of the company registered in the Netherlands – said UberX drivers are a microbusiness and should not have to pay GST until they earn $75,000, according to media reports.

An application to the Federal Court filed by Uber states that “…drivers are not permitted to register for GST unless they carry on an enterprise….drivers are only required to register for GST if any supply of taxi travel is made in ‘carrying on your enterprise”.

In May the ATO issued advice that Uber and ride sharing drivers were providing taxi travel under tax laws and were required to pay GST as well as file for an ABN.

The changes came into effect on August 1.

Other media reports this week claimed that Uber asked the ATO to remain quiet about the ruling as it feared the decision would harm its business.