Telecom Tax Blog

    The Five Best and Five Worst States for Starting a Telecom Solutions Provider Business

    Posted on Mon, Sep 16, 2013 @ 01:00 PM

    Are you thinking of becoming a solutions provider?  If so, what are the Five Best States for starting a technology business?  What are the Five Worst?

    CRN published an interesting article that looked at a broad range of criteria.  Here are the lists and brief explanations.  But, no matter where you start your business, SureTax can deliver your telecom tax solution, including VAT calculations for over 200 countries.

    Top Five

    #1 Utah.  Tech savvy and very pro-business.
    #2 Virginia.  Low taxes, limited regulations, sizable pool of educated workers and a virtually recession-proof economy.
    #3. Colorado
    #4. Washington
    #5. Maryland
     

    Bottom Five

    #50.  West Virginia.  Limited pool of IT educated workers and very limited business opportunities.
    #49.  Hawaii.  High labor costs and business expenses, taxes and regulatory environment, and business opportunity.
    #48. Wyoming
    #47. Arkansas
    #46. Mississippi

    Tags: telecom tax, voip tax, telecom taxes, telecommunications taxes, voip taxes, VAT tax, cloud computing

    Telecom Tax Avoidance and "Qui Tam"

    Posted on Wed, Jan 9, 2013 @ 11:11 AM

    At SureTax®, our services support telecom tax calculation for the purpose of compliance.  The notion being that if a company does not comply with tax laws, they are subject to fines and penalties.

    But, what if a company cheats - doesn’t pay taxes - and is caught by a whistleblower?  Then what happens?

    There is a provision in common law call called qui tam, which is short for the Latin phrase qui tam pro domino rege quam pro se ipso in hac parte sequitu, meaning ‘he who sues in this matter for the king as for himself’.  It’s a principle that is still alive in US law and it means that whistleblowers can earn some or all of the collections of a case presented on behalf of the government.

    Earlier this year, a whistleblower brought a qui tam case in New York under the state’s False Claims ActNew York attorney general Eric Schneiderman intervened in that case against a national wireless provider for deliberately under-collecting and under-paying $100 million dollars in sales taxes on wireless access plans.

    But, what about the federal tax?  Why not bring a qui tam case there also?

    A loophole in federal law prohibits whistleblowers from bringing qui tam cases.  The IRS has a whistleblower office, where whistleblowers can go to file a complaint.  But, if the IRS decides not to take the case, it’s over and the whistleblower has no qui tam option.

    In New York, the defendant must have at least $1 million in sales and must have deprived the state of at least $350,000 in revenue.

    Maybe Congress needs to take a look at New York to figure out how to increase collections.  A federal qui tam law could do for tax fraud what nickel return deposits did for aluminum can recycling.

     

    Tags: telecom tax, voip tax, telecom taxes, telecommunications taxes, telecommunications tax, ucaas, tax calculation, voip taxes, VAT tax

    US Suppliers of Digital Services being Targeted by UK for VAT Tax

    Posted on Fri, Sep 14, 2012 @ 11:08 AM

    Are you selling digital goods and services in the EU?

    We've heard that the UK is targeting US digital services sellers to ensure VAT compliance.  All companies outside of the European Union (like the United States) are required to register, collect and remit VAT tax.

    By digital services, we mean:

    • Software downloads
    • Content like digital music, games and video
    • Online images, databases and information
    • Webhosting
    • Cloud computing
    • eBooks
    • Website subscriptions
    SureTax® provides tax calculation solutions for digital services in the EU.  We can help with your EU tax calculation and compliance needs.

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    Tags: telecom tax, telecom taxes, VAT tax, cloud computing, digital goods, digital services

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