Universal tax engine
This Disclosure relates to a program controlled apparatus, system, and method for determining the transactional taxes due for each item by any taxing authority worldwide. The apparatus comprises a first database comprising a tree structure identifying all of the zones to be examined. A second database comprising all of the taxing authorities is independent from the first zone database. A third database, decoupled from the first and second databases, has data representing the relationship between the data records of the first database and the data records of the second database. Each of the databases can be updated periodically to reflect any changes in identified taxing authorities for the zones over which they may have taxing authority. Furthermore, the present invention provides for an independent, autonomous determination of jurisdiction and tax for each line item and calculates the tax based on any exceptions and exemptions.
1. An improved tax calculating device for calculating the tax on a transaction with at least one line item, comprising:
a table of zones representing at least one zone, the table of zones being a tree structure having more than one level, and wherein the table of zones is configured as computer-readable code stored at a computer-readable medium;
zone associating means configured as computer-executable instructions stored at a computer-readable medium, and further configured, when executed on a computer, to associate a zone with an address from the line item;
a table of authorities decoupled from said table of zones, the table of authorities representing at least one authority and being configured as computer-readable code stored at a computer-readable medium;
a zone authority table associating the zone with an authority and being configured as computer-readable code stored at a computer-readable medium;
authority associating means configured as computer-executable instructions stored at a computer-readable medium, and further configured, when executed on a computer, to associate at least one authority with the zone;
a table of jurisdiction method mapping associating the authority with a jurisdiction method and being configured as computer-readable code stored at a computer-readable medium;
jurisdiction method applying means configured as computer-executable instructions stored at a computer-readable medium, and further configured, when executed on a computer, to associate the authority to the jurisdiction method authority;
verifying means configured as computer-executable instructions stored at a computer-readable medium, and further configured, when executed on a computer, to verify that the authority associated with the zone has jurisdiction over the transaction;
a table of authority exceptions associating the authority with an exception method and being configured as computer-readable code stored at a computer-readable medium;
exception method identifying means configured as computer-executable instructions stared at a computer-readable medium, and further configured, when executed on a computer, to identify if an exception method is to be applied to the line item;
exception method applying means configured as computer-executable instructions stored at a computer-readable medium, and further configured, when executed on a computer, to apply the exception method associated with the authority to the line item;
a table of tax rules associating the authority with a tax rule and being configured as computer-readable code stored at a computer-readable medium;
tax rule applying means configured as computer-executable instructions stored at a computer-readable medium, and further configured, when executed on a computer, to use the authority to apply the tax rule to the transaction;
a table of tax rates associating the authority with a tax rate configured as computer-readable code stored at a computer-readable medium;
tax rate identifying means configured as computer-executable instructions stored at a computer-readable medium, and further configured, when executed on a computer, to identify the tax rate to apply to the line item using the identified tax rule; and
calculating means configured as computer-executable instructions stored at a computer-readable medium, and further configured, when executed on a computer, to calculate taxes due on the line item based on the identified tax rate.
2. The improved tax calculating device of claim 1 further including:
a controller for receiving an input representing, the transaction.
3. The improved tax calculating device of claim 2 further including:
storing means configured to store the calculated taxes and further configured as a computer-readable medium; and
means configured for, when executed on a computer, converting the line item with the calculated taxes to an enhanced transaction for outputting to as designated receiver, the line item-converting means being further configured as computer-executable instructions stored at a computer-readable medium.
4. The improved tax calculating device of claim 1 wherein the zone authority table further includes a processing order indicator associated with the authority and configured as computer-readable code stored at a computer-readable medium, and wherein the processing order indicator is further configured, when read by a computer, to indicate the order in which each authority is processed in the tax calculating device.
5. The improved tax calculating device of claim 1 wherein said table of authorities represents authorities from more than two countries.
6. The improved tax calculating device of claim 5 wherein each authority is processed independently of any other authority.