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I have never seen a website that does not charge sales tax except ebay.
Do you mean something else?
Many websites do not charge sales tax. For example, Amazon only collects sales tax in 26 states. A handful of states don't have sales tax, but most do.
Personally, I moved to a no-sales-tax state, feel much more ethical this way
Quote:
Originally Posted by misterno
what are you talking about? I have never seen a website that does not charge sales tax except ebay. Do you mean something else?
Every web retailer based in a state with no sales tax (AK,MT,NH,DE,OR) has no need or desire to collect sales tax. And few retailers collect sales tax when shipping to another state.
What he is really talking about is when people in tax-happy states like CA,IL,MA buy online and then fail to pay the state use tax on their online purchases. For example, Massachusetts and Illinois residents owe the state 6.25% on all out-of-state purchases used in their home state. For some California residents, it's 10%.
Evasion of "use tax" is tax evasion, many millions of Americans evade local taxes in this way.
Every web retailer based in a state with no sales tax (AK,MT,NH,DE,OR) has no need or desire to collect sales tax. And few retailers collect sales tax when shipping to another state.
What he is really talking about is when people in tax-happy states like CA,IL,MA buy online and then fail to pay the state use tax on their online purchases. For example, Massachusetts and Illinois residents owe the state 6.25% on all out-of-state purchases used in their home state. For some California residents, it's 10%.
Evasion of "use tax" is tax evasion, many millions of Americans evade local taxes in this way.
Most states have this tax. For example Wisconsin has a tax rate of 5%.
Many websites do not charge sales tax. For example, Amazon only collects sales tax in 26 states. A handful of states don't have sales tax, but most do.
It isn't breaking the law if the state don't pass a law that does indeed make it illegal to do something. Say texting while driving isn't specifically banned in Arizona, it is covered under the "distracted driving law." It's sometimes a case of the laws not keeping up with technology. For Arizona the distracted driving law and sales tax law are both behind the curve.
Post 58 is what I was told in the Grand Cayman Islands by their equivalent to our secretary of the treasury, and the lawyer that wrote the Tax Laws for the Grand Cayman Islands.
By U.S. laws and foreign treaties, even a judge in the U.S. is not allowed to force a person in court to break a law. That is why a person on the stand can take the 5th amendment, and not answer any question that can cause them trouble. That is why someone being charged with a crime, can not be forced to testify against themselves nor be forced to take the stand and be questioned by the opposing attorney. If they do take the stand, they can be questioned by the opposing attorney, but can take the 5th amendment and cannot be forced to answer.
Some countries like the Grand Cayman Islands, make laws that prohibit a person from even be asked about foreign held funds, their business in that country, and more. Then we have treaties with the other countries, that someone cannot be forced in court, to beak laws of another country. This is also to protect Americans, that foreign countries cannot force an American to break U.S. laws.
I am not trying to tell you the laws as I am not a lawyer, but what I was taught when in the Grand Cayman Islands. For the real latest data, you need to consult an attorney that specializes in international law.
As we were taught, a lot of what can be done in the Grand Cayman Islands is illegal in the U.S. such as methods to avoid paying U.S. taxes. Apple computer has billions of dollars in the Grand Cayman Islands, which are profits made overseas. They are using the Grand Cayman Laws to protect their interests. If any of that money is imported into the U.S. then it may have a lot of tax consequences. As long as it is in the Grand Cayman Islands it does not.
Their money laws, and business laws for foreign companies were written by the man that was known at the time as the best Tax Attorney/CPA in the united states. He was an attorney/CPA. At the conference as old friends, he and his wife and myself and my wife sat together for a week and we spent a lot of time talking during breaks and ate our meals together. The equivalent of the British Prime Minister for the Grand Caymans (remember they are a British country such as is Canada), sat directly in front of me all week and we often talked during breaks, and we had the equivalent of our Secretary Of The Treasury come in and speak with us. So I feel I had even more knowledge from the conference than the others that attended due to who we associated with for a week.
It isn't breaking the law if the state don't pass a law that does indeed make it illegal to do something. Say texting while driving isn't specifically banned in Arizona, it is covered under the "distracted driving law." It's sometimes a case of the laws not keeping up with technology. For Arizona the distracted driving law and sales tax law are both behind the curve.
This is incorrect. I don't know about your country but in the United States we have federal laws, state laws, and local laws/ordinances. Any of the three come into play. In the case of tax evasion, there's a federal law in place. This, alone, is enough for it to be illegal to evade taxes... whether or not the law exists at the state level.
That being said, all states that have sales and use tax, require residents to pay those taxes. It has nothing to do with technology...
This is incorrect. I don't know about your country but in the United States we have federal laws, state laws, and local laws/ordinances. Any of the three come into play. In the case of tax evasion, there's a federal law in place. This, alone, is enough for it to be illegal to evade taxes... whether or not the law exists at the state level.
That being said, all states that have sales and use tax, require residents to pay those taxes. It has nothing to do with technology...
Yes but online sales aren't always subject to these laws which makes my claim correct and a case of laws not keeping up with technology. And Arizona isn't part of the US?, I thought it's the 48th state in the union and last in the main land...
When are online sales not subject to sales and use taxes? They are almost always subject to these laws...
If the State DOESN'T tax sales online, how can online sales be subject to sales taxes? As I mentioned, AZ don't have one and I only get subjected to it from out of state sellers who do.
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Personally, I moved to a no-sales-tax state, feel much more ethical this way
As I mentioned, AZ don't have one and I only get subjected to it from out of state sellers who do.
