tax on tax and the TaxAuthorityRateProduct.titleTransfer field

[Si Chen-2]

Hi.  I have two tax related questions -

1.  Does OFBiz support tax on tax?  I just wanted to confirm that it  
does not.  Looking at TaxAuthorityServices getTaxAdjustments method,  
as it seems to iterate over all the TaxAuthorityRateProduct in the  
"filteredList", multiplies each one by the itemAmount, and then adds  
them to the list of adjustments.

2.  Is the TaxAuthorityRateproduct's "Title Transfer" field required  
or not?  When you create a Tax Authority Rate Product the drop down  
does not allow an empty value, but the update form does, and it seems  
that updating it to no value is OK too.  If so, I'll just make a  
change to the form to fix it.

Si

 

[David E Jones-2]

On Aug 24, 2006, at 11:04 AM, Si Chen wrote:

> 1.  Does OFBiz support tax on tax?  I just wanted to confirm that  
> it does not.  Looking at TaxAuthorityServices getTaxAdjustments  
> method, as it seems to iterate over all the TaxAuthorityRateProduct  
> in the "filteredList", multiplies each one by the itemAmount, and  
> then adds them to the list of adjustments.

Yeah, that sounds right. In other words: no, there is not support  
right now for charging tax on tax.

Is this a requirement you've run into somewhere? Sounds a bit  
nasty... from a business perspective and a technical perspective. ;)

-David

[Jacques Le Roux]

> On Aug 24, 2006, at 11:04 AM, Si Chen wrote:
>
> > 1.  Does OFBiz support tax on tax?  I just wanted to confirm that
> > it does not.  Looking at TaxAuthorityServices getTaxAdjustments
> > method, as it seems to iterate over all the TaxAuthorityRateProduct
> > in the "filteredList", multiplies each one by the itemAmount, and
> > then adds them to the list of adjustments.
>
> Yeah, that sounds right. In other words: no, there is not support
> right now for charging tax on tax.

> Is this a requirement you've run into somewhere? Sounds a bit
> nasty... from a business perspective and a technical perspective. ;)
>
> -David

In France a such thing existed. It's called CSG (Contribution Sociale Généralisée or in english something like Social Generalized
Contribution). Actually only a part of CSG was really tax on tax.This normally has been corrected but I'm not totaly sure... I can
see many other cases where such thing actually exists, they are peculiar cases but they exist. It seems also that at least it exists
in Canada.

That does not mean that I need it...

Jacques

[Si Chen-2]

It is very much a nasty practice, but it does seem like there are  
countries that practice it: a regional tax on top of a national or  
federal tax.  As long as all products would require both national and  
federal tax, I think we're OK - we can just put in a regional tax at  
a higher rate.  If we run into a situation where some products are  
charged a federal tax and some not, all are charged a regional tax,  
and the regional tax is a tax-on-tax, then we'd need to model the tax-
on-tax.  :)

Si


On Aug 25, 2006, at 1:23 PM, Jacques Le Roux wrote:

>> On Aug 24, 2006, at 11:04 AM, Si Chen wrote:
>>
>>> 1.  Does OFBiz support tax on tax?  I just wanted to confirm that
>>> it does not.  Looking at TaxAuthorityServices getTaxAdjustments
>>> method, as it seems to iterate over all the TaxAuthorityRateProduct
>>> in the "filteredList", multiplies each one by the itemAmount, and
>>> then adds them to the list of adjustments.
>>
>> Yeah, that sounds right. In other words: no, there is not support
>> right now for charging tax on tax.
>
>> Is this a requirement you've run into somewhere? Sounds a bit
>> nasty... from a business perspective and a technical perspective. ;)
>>
>> -David
>
> In France a such thing existed. It's called CSG (Contribution  
> Sociale Généralisée or in english something like Social Generalized
> Contribution). Actually only a part of CSG was really tax on  
> tax.This normally has been corrected but I'm not totaly sure... I can
> see many other cases where such thing actually exists, they are  
> peculiar cases but they exist. It seems also that at least it exists
> in Canada.
>
> That does not mean that I need it...
>
> Jacques

... [show rest of quote]

[David E Jones-2]

This would be a good thing to use the TaxAuthorityAssoc for, and with  
a new TaxAuthorityAssocType that would represent that the local tax  
should include the associated tax authority's tax in the taxable amount.

Does that sound about like what you're looking for?

-David


On Aug 25, 2006, at 6:44 PM, Si Chen wrote:

> It is very much a nasty practice, but it does seem like there are  
> countries that practice it: a regional tax on top of a national or  
> federal tax.  As long as all products would require both national  
> and federal tax, I think we're OK - we can just put in a regional  
> tax at a higher rate.  If we run into a situation where some  
> products are charged a federal tax and some not, all are charged a  
> regional tax, and the regional tax is a tax-on-tax, then we'd need  
> to model the tax-on-tax.  :)
>
> Si
>
>
> On Aug 25, 2006, at 1:23 PM, Jacques Le Roux wrote:
>
>>> On Aug 24, 2006, at 11:04 AM, Si Chen wrote:
>>>
>>>> 1.  Does OFBiz support tax on tax?  I just wanted to confirm that
>>>> it does not.  Looking at TaxAuthorityServices getTaxAdjustments
>>>> method, as it seems to iterate over all the TaxAuthorityRateProduct
>>>> in the "filteredList", multiplies each one by the itemAmount, and
>>>> then adds them to the list of adjustments.
>>>
>>> Yeah, that sounds right. In other words: no, there is not support
>>> right now for charging tax on tax.
>>
>>> Is this a requirement you've run into somewhere? Sounds a bit
>>> nasty... from a business perspective and a technical perspective. ;)
>>>
>>> -David
>>
>> In France a such thing existed. It's called CSG (Contribution  
>> Sociale Généralisée or in english something like Social Generalized
>> Contribution). Actually only a part of CSG was really tax on  
>> tax.This normally has been corrected but I'm not totaly sure... I can
>> see many other cases where such thing actually exists, they are  
>> peculiar cases but they exist. It seems also that at least it exists
>> in Canada.
>>
>> That does not mean that I need it...
>>
>> Jacques
>

... [show rest of quote]

[Si Chen-2]

David,

Yes, that sounds like a good idea if we ever had to implement that.  
It does not seem like we need to at this stage--just using a higher  
regional tax rate seems to work OK.

Si


On Aug 25, 2006, at 5:57 PM, David E Jones wrote:

>
> This would be a good thing to use the TaxAuthorityAssoc for, and  
> with a new TaxAuthorityAssocType that would represent that the  
> local tax should include the associated tax authority's tax in the  
> taxable amount.
>
> Does that sound about like what you're looking for?
>
> -David
>
>
> On Aug 25, 2006, at 6:44 PM, Si Chen wrote:
>
>> It is very much a nasty practice, but it does seem like there are  
>> countries that practice it: a regional tax on top of a national or  
>> federal tax.  As long as all products would require both national  
>> and federal tax, I think we're OK - we can just put in a regional  
>> tax at a higher rate.  If we run into a situation where some  
>> products are charged a federal tax and some not, all are charged a  
>> regional tax, and the regional tax is a tax-on-tax, then we'd need  
>> to model the tax-on-tax.  :)
>>
>> Si
>>
>>
>> On Aug 25, 2006, at 1:23 PM, Jacques Le Roux wrote:
>>
>>>> On Aug 24, 2006, at 11:04 AM, Si Chen wrote:
>>>>
>>>>> 1.  Does OFBiz support tax on tax?  I just wanted to confirm that
>>>>> it does not.  Looking at TaxAuthorityServices getTaxAdjustments
>>>>> method, as it seems to iterate over all the  
>>>>> TaxAuthorityRateProduct
>>>>> in the "filteredList", multiplies each one by the itemAmount, and
>>>>> then adds them to the list of adjustments.
>>>>
>>>> Yeah, that sounds right. In other words: no, there is not support
>>>> right now for charging tax on tax.
>>>
>>>> Is this a requirement you've run into somewhere? Sounds a bit
>>>> nasty... from a business perspective and a technical  
>>>> perspective. ;)
>>>>
>>>> -David
>>>
>>> In France a such thing existed. It's called CSG (Contribution  
>>> Sociale Généralisée or in english something like Social Generalized
>>> Contribution). Actually only a part of CSG was really tax on  
>>> tax.This normally has been corrected but I'm not totaly sure... I  
>>> can
>>> see many other cases where such thing actually exists, they are  
>>> peculiar cases but they exist. It seems also that at least it exists
>>> in Canada.
>>>
>>> That does not mean that I need it...
>>>
>>> Jacques
>>
>

... [show rest of quote]