Comment on RoadTest Terms & Conditions: Tax Liability

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

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

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.

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.

Nico,

I read what mcb1 wrote. Perhaps I misinterpreted what he said. I pretty sure that the tax liability is the selling-cost of the product.

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

I can imagine people will think twice before applying to a Design Challenge as prizes are typically well over 600$.

From what I understand this is a US thing only? Why would this be different for EU? Does the EU not expect any tax income?

The 1099 form that was sent to the RoadTester is a US income form for tax purposes.

I believe the 3 roadtesters were based in the US.

Randall

I understand, but generally speaking, does this apply to the US only or is there a similar EU counterpart to this 1099 form?

I'm going to have to look into it. This was the first time I had to address this issue.

I'll create a post discussing this issue once I get the information.

Randall

I'm going to have to look into it. This was the first time I had to address this issue.

I'll create a post discussing this issue once I get the information.

Randall