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

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

Thanks ntewinkel

Yes I did mean lie.

We see the misrepresentation of price often with our Asian parts suppliers and frankly it's not helpful.

In any organisation there are two prices .... what it cost, and what it sells for.

Mark

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

It may be that the US requires those documents, but other countries still leave it up to the individuals to declare.

Also, in countries like Canada (where I live), winnings are not taxed. It might be that the US is one of the few countries that does that.

For a country that claims to have low taxes, the US seems to hit people much harder across a wider range!

Frederick Vandenbosch wrote:

 

Why would this be different for EU?

Because taxation is different in different countries!

One of the key prerogative of a Sovereign State is to set its own tax regime.

That's how we have so-called "tax havens" ...

Of course the taxation itself is different per country, I'm not debating that. But there have been only mentions of the US, no other countries. I'm sure the EU would like its own cut, so my question was: isn't there a similar form for EU citizens?

Yup, tax is ikely to be different all over Europe. Just spent the week in Netherlands and all the taxi drivers were moaning about extra tax on car purchases.

Frederick Vandenbosch wrote:

 

isn't there a similar form for EU citizens?

There is no such thing as an "EU citizen" - we are citizens of our own countries.

The EU doesn't collect taxes from individuals - that's down to the separate governments.

EDIT: Correction - there is such a thing as an "EU citizen"

https://en.wikipedia.org/wiki/Citizenship_of_the_European_Union

In Germany you would need to declare this on your yearly tax declaration, as additional income. Probably you need to also hand in the invoice you get from E14 / Farnell as prove.

In Germany you would need to declare this on your yearly tax declaration, as additional income. Probably you need to also hand in the invoice you get from E14 / Farnell as prove.