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Comment on RoadTest Terms & Conditions: Tax Liability

rscasny

I read some comments early this week regarding "personal" tax liability as a result of a RoadTest part they received. (As far as customs and/or duties of the shipments we send to RoadTesters, element14 should be paying those taxes. If a RoadTester is being charged for these, please notify me and I will get you a reimbursement.)

 

I think there are two things I wanted to comment on with regard to personal tax liability:

 

1. The RoadTest "Terms and Conditions" says the following:

 

Winners are responsible for all applicable taxes, duties or other charges payable in relation to any prize.

 

If you are a new RoadTester, you should read the T&Cs and get familiar with them.

 

2. In the U.S., if you receive a RoadTest product that is valued over $600, the company is required to issue you a 1099 form (Independent Contractor). This is considered personal income.

 

In hindsight, I guess I could have added a reminder to the RoadTesters who received products valued in excess of $600 as a courtesy. In the future, I will. Most of our RoadTest products are valued less than $100 so this issue doesn't come up very often. I apologize for any inconvenience this has posed.

 

Randall Scasny

RoadTest Program Manager

 

 

  • Thanks for the clarification, Randall.

     

    For clarity, is the value you use for the declaration the suggested retail price as listed on the website (ie, the one we see when applying to the RoadTest?) or a cost price?

     

    -Nico

  • in reply to ntewinkel

    That's a good question. I believe it is the price on the website. Let me check.

     

    Randall

  • Nice clarification.

    To be fair to the original poster, it was the prize that he was having to pay tax on.

     

     

    Without trying to be fradulent, it would be nice if the cost price of the item was what was declared.

    After all that's the value the sponsor or element14 has passed onto the receipient.

     

    You could make them sign a DNF that the price remained confidential, if there were concerns.

     

     

    Thanks

    Mark

  • If RoadTester need pay tax. Does it mean he/she can trans or sell the test items to other people?

    I think it is not feasible.

    If people buy a tested item it is dangerous. Sponsor can't ensure quality.

  • in reply to mcb1

    Fraudulent?

     

    In America, our lotteries or any kind of contests or our casinos will make you pay Uncle Sam (ie, US government) if you win a certain amount. It's common knowledge. 

     

    If you read our T&Cs, a Roadtest is defined as a contest. Same rules apply. If you win over $600, Premier Farnell will issue you a form for your taxes.

     

    Anyone who does not realize this has not read our Terms and Conditions for the RoadTest which are published for every roadtest. You should read them, but even if you do not read them, you are responsbile for what requirements are in the T&Cs.

     

    It may be different outside of the US, but in the US if you get something over 600 bucks, you will get issued a 1099 and our government tracks it.

     

    I don't think it is my responsibility to read to our RoadTesters our Terms and Conditions.But I feel it is my responsibility to improve the system as much as I can. On that note, I will as a courtesy include a Tax Liability Tab on the roadtest if the product is over $600 US.

     

    The cost of the product can easily be found by searching for the product on Newark or Farnell.

     

    But I did look back in my notes. Kelly asked me for the cost of the product and the names of the roadtesters who received it -- it was close to $4,000. She submitted the paperwork to our accounting department. So I presume the cost of the product = the amount on the tax form issued to the roadtester.

     

    This is not something that happens often. Usually it's a piece of test equipment. I added a tax liability tab for the 1000X O'scope Roadtest because its around $1000. The Intel Joule is around $400, so a tax form will not be issued. None of the other Roadtests meet the $600 threshold.

     

    Randall

  • If anyone wonders about the cost of the product, go to the roadtest and click the buy now button.

     

    For this roadtest:

     

    IntelRegistered JouleTm 570x Developer Kit

     

    The price is $399.

     

    There are 2 conditions where the buy button may not work:

     

    1. If the roadtest is a reference design: so this product is not a currently marketed product. It has no price because it was specially built for a roadtest. Therefore, we will never issue you a tax form.

     

    2. if the product is what we call an NPI (new product introduction) the buy button may not work because the product is working its way through our system to create SKU numbers and product pages. I try to follow up on those when they become available.

     

    If you ever see a roadtest buy-now button not working, please contact me. I will get our team to work on it or get you the information you need.

     

    Randall Scasny

    RoadTest Program Manager

  • in reply to rscasny

    Fraudulent?

     

    I think Mark meant that we don't expect E14 to lie about the value of an item (ie, report it as $100 when it's really $1000, to cheat the tax system), but it would be nice if cost price were used instead of MSRP.

  • in reply to rscasny

    Is this something new? I know for certain in the past that these forms were not issued for some larger ticket items given away in design competitions.

  • in reply to ntewinkel

    Nico,

     

    I read what wrote. Perhaps I misinterpreted what he said. I pretty sure that the tax liability is the selling-cost of the product.

  • in reply to michaelwylie

    Michael,

     

    I can't answer your question. This is the first time I dealt with a high-cost item. when it happened, I wasn't going to do anything. Then Kelly told me I had to do it for this product because it cost so much. Clearly, this needs more clarification. I've put it on my list of things to discuss with my new boss, Mindi.

     

    Randall