Fwd: Re: a tax issue!

[Tim McGrath <tim.mcgrath@documentengineeringservices.com>]

Here is the response we got from the ex-Tax XML TC participants with respect to the Tax Tier question.

The Model Andy refers to is the OASIS Indirect Tax Reference Model Version 2.0:
https://www.oasis-open.org/committees/download.php/25886/taxxml-indirect_tax-2.0-reference_model-wd-07.pdf

We spent quite some time and effort to align UBL 2.0 with their model so it should be familiar to us.

There is also some comments on their mail archive that says...

For a simple percentage-tax the name/identifier of the relevant tax
structure for ease of understanding might be just that rate ("5%" instead of
something like "LowRate"), but for a tiered structure, it would have to be a
name of that structure and not the rate that happens to apply in the
particular situation. The actual numeric rate resulting from the application
of the function (you might say an intermediary result of the calculation)
may or may not be something you want to include in the document along with
the resulting tax amount.

Based on this I propose we make the definitions:

Tax Category. Tier Range. Text

      Where a tax is tiered, the range of taxable amounts that define the rate of tax to apply for the tax category.

   Tax Category. Tier Rate. Percent

      Where a tax is tiered, the tax rate that applies within a specified range of taxable amounts for the tax category.


   Tax Subtotal. Tier Range. Text

      Where a tax is tiered, the range of taxable amounts that define the rate of tax to apply for the tax subtotal.

   Tax Subtotal. Tier Rate. Percent

      Where a tax is tiered, the tax rate that applies within a specified range of taxable amounts for the tax subtotal.


In addition we should put into the main UBL documentation a definition of tiered tax:
   Tiered Tax – A rate of Tax that varies according to a level of the taxable basis within a set of defined ranges.  For example, Sales Taxes may be applied as:
Total sale under $30 = 5%

Total sale $30 to $149.99 = 7.5%

Total sale $150 or more = 10%

Where "Total sale under $30" is the name of the Tier Range and "5%" is the Tier Rate.

-------- Original Message --------

Subject:	Re: a tax issue!
Date:	Thu, 6 Sep 2012 20:57:22 +0100
From:	Andy Greener <andy@gid.co.uk>
To:	Harm-Jan van Burg <harmjan@vanburg.net>
CC:	Michael Roytman <michael.roytman@vertexinc.com>, tim.mcgrath@documentengineeringservices.com

Harm,

Very good to hear from you after all this time! I hope you are well (and Michael too). As you will see from my .sig I am still working for HMRC (just!), but doing other (XBRL and Inline XBRL-related) things too.

I think this query from Tim relates to the Indirect Tax reference model - there is a section on tax types which contains the following structure definition:

·       Tiered Tax – A rate of Tax that varies according to a level of the taxable basis within a set of defined ranges.

-       Tier Range – The range of taxable amounts that define the rate of Tax to apply.

-       Tier Tax Rate – The tax rate that applies within a specified range of taxable amounts.

It is not an income tax concept, it is an indirect tax concept (i.e. something that is applied to a business transaction, and therefore relevant to UBL). Does Tim have the Indirect tax Model doc? It would probably help a lot! I don't have a final version, just drafts, but he ought to be able to obtain the Final Rec of version 2.0 from OASIS....

I'm pretty sure that it refers to a duty or indirect tax of some description that is levied at different rates depending on the value of the transaction. This type of indirect tax is not common, but we must have found examples of it being used in the real world or it wouldn't be in the model!

I hope that helps.

Andy

On 5 Sep 2012, at 08:30, Harm-Jan van Burg <harmjan@vanburg.net> wrote:

Hello Guys,

Long time no see. Seems UBL took up the tax reference model of our old group. Tim and I are both UNCEFACT vice chairs now so we had some "talks" 

Can you help him out?

Regards,

Harm Jan van Burg

ps I am currently try to set up a tax domain in UN/CEFACT after the old model we had in the past!

Begin doorgestuurd bericht:

Van: Tim McGrath <tim.mcgrath@documentengineeringservices.com>

Onderwerp: a tax issue!

Datum: 5 september 2012 05:38:26 CEST

Aan: Harm-Jan van Burg <harmjan@vanburg.net>

We are currently trying to update some of the element defintions in UBL 2.1 and one thing we are struggling with is the element known as Tax Category/Tier Range.

I suspect it appears following discussion with the TaxML folks - so i figured i would ask you.

It is defined as "Where a tax is tiered, the range of tiers applied in calculating a tax subtotal applying to this tax category."  but none of use can think of how this range of tiers applies to business taxes (we think maybe for income taxes there are "tiers").

Do you have any ideas? or can you point me to someone who might be able to explain what this might.

<tim_mcgrath.vcf>

-- 

Andy Greener

Enterprise Architect

Business Tax Programme and Strategy & Architecture

Information Management Systems, HMRC

andy.greener@hmrc.gsi.gov.uk / andy@gid.co.uk

07836 331933

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