Thomson Reuters Corporation : Thomson Reuters Reports 2012 Quirky Tax Laws

  Thomson Reuters Corporation : Thomson Reuters Reports 2012 Quirky Tax Laws

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

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

  oIn 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).
  oWhile 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).
  oBoat 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).
  oWine 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).
  oRetiring 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).
  oIn Connecticut, not all diapers are created equal. Adult diapers are tax
    exempt, but children's diapers are taxed.
  oIn 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.
  oThis 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

For more information on ONESOURCE Indirect Tax, visit:


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Aimee Quemuel


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