Thomson Reuters Reports 2012 Quirky Tax Laws

Mon Jan 28, 2013 9:30am EST

* Reuters is not responsible for the content in this press release.

For best results when printing this announcement, please click on the link below:

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130128:nHUGcTSs


Strange Laws Underscore Need for Technology and Expertise to Manage Complex Indirect Tax Process 

New York, January 28, 2013 -The Tax & Accounting business of Thomson Reuters today revealed a
sampling of 2012 quirky indirect tax changes, emphasizing the importance of corporate tax
technology and expertise to help navigate the dynamic indirect tax and VAT landscape. 

"While some of the changes may seem odd and unnecessary, they highlight how challenging it is for
corporations to stay on top of the sea of changing indirect and value-added tax laws," said Carla
Yrjanson, vice president of Tax Research and Content for Thomson Reuters." 

Thomson Reuters provides a trusted indirect tax software platform used by leading global
companies.  Companies that have deployed indirect tax solutions from Thomson Reuters benefit from
a proven technology infused with critical, timely tax content, which enables them to seamlessly
comply with tax changes immediately.

A few of the 2012 "quirky" sales and use tax highlights include: 

*In Illinois, fans of Whoppers malted milk balls are in luck.  The Illinois candy tax applies to
all candies, unless they contain flour, like Whoppers (IL FY 2010-01 July 2009; Illinois DOR
Informational Bulletin). 
*While food and food products are typically tax exempt, New York has deemed vegan edible gummy
drinking glasses taxable.   Under the current ruling, the glasses were deemed a confection and
therefore taxable under current sales and use tax law (Advisory Opinion issued October 24, 2012).
*Boat enthusiasts are rejoicing in Maine as a result of the new tax exemption for parts and
supplies such as sails, rope, rigging and masts used for operating, repairing and maintaining
windjammers used to ferry people and cargo as a business activity (36 MRSA § 2020 signed into law
July 6, 2011, effective October 1, 2012).
*Wine lovers in Maryland are now subject to double taxation should they wish to bring their own
bottle of wine to their favorite restaurant.  Under the new ruling, residents are taxed for having
someone open the bottle for them (MD SB 755/HB 228; Maryland Tax Bulletin 12-1 signed into law
April 10, 2012, effective July 1, 2012).
*Retiring just got sweeter for residents of Sitka, Alaska, who are now exempt from sales tax for
the purchase of goods, services and rentals after reaching the ripe age of 65 (effective October
1, 2012). 
*In Connecticut, not all diapers are created equal.  Adult diapers are tax exempt, but children's
diapers are taxed. 
*http://alisondb.legislature.state.al.us/acas/CodeOfAlabama/1975/coatoc.htmIn Alabama, playing
card decks that contain less than 54 cards are charged an additional $0.10 excise tax.  To ensure
compliance, each taxable deck must have "revenue stamps" affixed to the individual package. The
stamps must be affixed in such a manner that their removal will require continued application of
water or steam.  All taxable playing cards found in the possession of any person, firm,
corporation, club or association without having stamps affixed in this manner are subject to
confiscation (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §573; Acts 1951, No. 978, p. 1653; ). 

*http://newsfixnow.com/2012/11/14/spanish-theater-sells-carrots-to-avoid-tax-hike/This last one is
not really an odd tax law, but rather a twist on a "normal" tax law turned strange by a business
owner. A theater owner in Spain came up with a unique solution to falling ticket sales after the
VAT on admissions to theaters was raised to 21 percent this summer:  carrots. Since vegetables are
subject to a reduced rate (currently 4 percent), the theater has transformed itself into a produce
stand of sorts. Now when customers opt to buy their carrots from the theater for a mere $16, they
are treated to a free theatrical performance (see: ). 

For more information on ONESOURCE Indirect Tax, visit: http://onesourceindirecttax.com
http://onesourceindirecttax.com/ . 

-End-

About Thomson Reuters

Thomson Reuters is the world's leading source of intelligent information for businesses and
professionals. We combine industry expertise with innovative technology to deliver critical
information to leading decision makers in the financial and risk, legal, tax and accounting,
intellectual property and science and media markets, powered by the world's most trusted news
organization. With headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson
Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI). For more
information, go to http://www.thomsonreuters.com http://www.thomsonreuters.com/ 

CONTACT

 Aimee Quemuel                     
 415-753-9005                      
 aimee@codeycommunications.com     


Aimee Quemuel
415-753-9005
aimee@codeycommunications.com


---------------------------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Thomson Reuters Corporation via Thomson Reuters ONE


HUG#1673436

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.