UNIVERSAL TAX ENGINE

• US 20110191215A1
• Filed: 03/18/2011
• Published: 08/04/2011
• Est. Priority Date: 06/23/2003
• Status: Active Grant

• Current Assignee: Thomson Reuters Enterprise Centre GmbH (The Woodbridge Co. Ltd.)
• Original Assignee: Sabrix, Inc. (The Woodbridge Co. Ltd.)
• Inventors: Seymour, James Madison JR., Christian, Eric Thomas, Barta, James Donovan, Nadler, Jeffrey Evan, Fong, Carolyn Brauner, Woolsey, Gregory Alan, Blotner, Joseph Allen, Waterhouse, Thomas William
• Granted Patent: US 8,332,274 B2
• Time in Patent Office: Days
• US Class Current: 705/31
• CPC Class Codes: G06Q 20/207 Tax processing
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

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.

Claims

1. A program controlled apparatus comprising:

a taxing authority database configured as computer-readable code stored at a computer-readable medium, the taxing authority database having a table with data records identifying at least two taxing authorities wherein each of the at least two taxing authorities operates independently of any other taxing authority in the database to calculate a tax due on a transaction; and

an exception handling means for determining if there is at least one exception to apply to said transaction, wherein the exception handling means is configured as computer-executable instructions stored on a computer-readable medium.

2. The program controlled apparatus of claim 1 wherein each taxing authority further includes:

a jurisdiction determining means for determining at least one jurisdiction to apply to said transaction, wherein the jurisdiction determining means is configured as computer-executable instructions stored on a computer-readable Medium; and

a tax calculation means for calculating said tax due on said transaction based on the determined jurisdiction and the determined exception applied to said transaction, wherein the tax calculation means is configured as computer-executable instructions stored on a computer-readable medium.

3. The program controlled apparatus of claim 2 further including a second database configured as computer-readable data stored at a computer-readable medium, and further configured, when read by a computer, to associate said jurisdiction determining means, said exception handling means, and said tax calculation means with each said taxing authority.

4. The program controlled apparatus of claim 2 wherein the same jurisdiction determining means can be utilized by more than one taxing authority.

5. The program controlled apparatus of claim 2 wherein the same exception handling means can be utilized by more than one taxing authority.

6. The program controlled apparatus of claim 2 wherein the same tax calculation means can be utilized by more than one taxing authority.

7. The program controlled apparatus of claim 3 wherein said taxing authority database and the second database can each be updated with new data when there is a change in said taxing authority, said jurisdiction determining means, said exception handling means, or said tax calculation means.

8. A program controlled apparatus for calculating taxes due on a transaction, comprising:

a first database configured as computer-readable data stored at a computer-readable medium and having a table with data records identifying at least one zone;

a second database configured as computer-readable data stored at a computer-readable medium, wherein the second database is decoupled from the first database, the second database having data records on at least one taxing authority, whereby the first database and the second database can be updated with new data to reflect changes in taxing zones and authorities; and

means for determining an exception method to be applied to said transaction, wherein the exception method-determining means is configured as computer-executable instructions stored at a computer-readable medium, and further configured, when executed by a computer, to determine if said transaction is subject to an exception to the transactional tax.

9. The program controlled apparatus of claim 8, further including a third database configured as computer-readable data stored at a computer-readable medium, wherein the third database is decoupled from said first and said second databases, the third database having data representing relations between data records in said first database and data records in said second database.

10. The program controlled apparatus of claim 8, wherein said first database is a table representing a tree structure of zones, the tree structure having at least 2 levels.

11. The program controlled apparatus of claim 8 wherein said second database contains data records for more than one authority.

12. The program controlled apparatus of claim 8 further comprising a table of jurisdiction determination methods configured as computer-readable code stored at a computer-readable medium;

and

means for associating a jurisdiction determination method for each authority in said second database, wherein the jurisdiction determination method associating means is configured as computer-executable instructions stored at a computer-readable medium and, when executed by a computer, associates each authority with a jurisdiction determination method.

13. The program controlled apparatus of claim 12 wherein at least one of said jurisdiction determination methods can be associated with more than one authority in said second database by said means for associating a jurisdiction determination method.

14. The program controlled apparatus of claim 12 further comprising means for determining verification of jurisdiction eligibility, wherein the jurisdiction eligibility verification determining means is configured as computer-executable instructions stored at a computer-readable medium and, when executed by a computer, approves further processing of a jurisdiction pursuant to a valid jurisdiction determination and rejects further processing of a jurisdiction pursuant to an invalid jurisdiction determination.

15. The program controlled apparatus of claim 14 further comprising a table of exception methods configured as computer-readable code stored at a computer-readable medium, wherein the exception methods define exemptions, exceptions and specially negotiated rates.

16. The program controlled apparatus of claim 15 further comprising a table of tax rules configured as computer-readable code stored at a computer-readable medium;

and

means for determining tax rules that apply to said transaction, wherein the tax rule-determining means is configured as computer-executable instructions stored at a computer-readable medium and, when executed on a computer, associate at least one tax rule with said transaction.

17. The program controlled apparatus of claim 16 further comprising a table of tax rates configured as computer-readable code stored at a computer-readable medium;

and

means for determining a tax rate to be applied to said transaction, wherein the tax rate-determining means is configured as computer-executable instructions stored at a computer-readable medium and, when executed on a computer, associate at least one tax rate with said transaction.

18. The program controlled apparatus of claim 17 further comprising means for applying said determined tax rate to said transaction whereby an amount of tax due to said tax authority is calculated, wherein the tax rate-applying means is configured as computer-executable instructions stored at a computer-readable medium.

19. The program controlled apparatus of claim 18 further comprising storing means configured to store said amount of tax due calculated whereby the amount of tax due can be recalled at a later time, wherein the storing means comprise a computer-readable medium.

20. A method of calculating transactional tax computations, comprising:

inputting a transaction in a first format;

converting the transaction to an invoice containing at least one line item;

associating at least one address with the line item;

validating the line item as having at least one valid address;

associating the valid addresses with at least one zone to produce an enhanced line item;

using the zone to associate the enhanced line item with at least one authority;

using the authority associated with the enhanced line item to determine at least one jurisdiction determination method associated with the authority;

using the authority and line item to determine if any exceptions apply to the line item;

applying any identified exceptions to the line item;

associating at least one tax rule with the line item;

associating a tax rate with the tax rule;

applying the tax rate to the line item;

storing the result of applying the tax rate;

outputting the result of applying the tax rate; and

converting the result of applying the tax rate to a format for transmission.

21. A program controlled apparatus for calculating any taxes due on a transaction, the apparatus comprising:

an input coordinator for receiving an invoice listing at least one line item;

a first database having a table identifying at least one authority;

a second database having a table in a tree structure identifying at least one zone;

a third database associating the zone with the authority;

a fourth database associating the authority with a jurisdiction method;

a fifth database associating the authority with an exception method;

a sixth database associating the authority with a tax calculation method;

a seventh database associating a tax calculation method with a tax rate; and

a server having programming for determining all taxes due on the line item according to the authority identified, the zone identified, the jurisdiction method identified, the exception method identified, the tax calculating method identified and the tax rate identified by the data maintained by the first, second, third, fourth, fifth, sixth, and seventh databases.

22. The program controlled apparatus of claim 21 wherein said first, second, third, fourth, fifth, sixth, and seventh databases are updateable with new data communicated to the apparatus.

23. A method for calculating any taxes due on a transaction, the method comprising the steps of

inputting a transaction in a first format from a selected transaction processing source system to a program controlled apparatus for performing tax related transactions;

converting the transaction to an invoice having at least one line item;

associating at least one address with the line item;

validating the line item as having at least one valid address;

associating the line item with at least one zone to produce an enhanced line item;

using the zone to associate the enhanced line item with at least one authority;

using the authority associated with the enhanced line item to determine at least one jurisdiction determination method associated with the authority;

using the authority and line item to determine if any exceptions apply to the line item;

applying any identified exceptions to the line item;

associating at least one tax rule with the line item;

associating a tax rate with the tax rule;

determining if there are any exceptions to the tax rate;

applying the tax rate to calculate a tax amount;

storing the result of applying the tax rate;

outputting the result of applying the tax rate; and

converting the line item and the result of applying the tax rate to a format for transmission.

24. The method of claim 23 wherein the format for transmission is an XML format.

25. A computer-implemented program stored on a hardware-readable medium, said program including instructions for generating a calculated tax due on a transaction, said program causing processing hardware executing said program to carry out at least the following program steps:

converting an input transaction to an invoice containing at least one line item;

associating at least one address with the line item;

validating the line item as having at least one valid address;

associating the valid addresses with at least one zone to produce an enhanced line item;

using the zone to associate the enhanced line item with at least one authority;

using the authority associated with the enhanced line item to determine at least one jurisdiction determination method associated with the authority;

using the authority and line item to determine if any exceptions apply to the line item;

applying any identified exceptions to the line item;

associating at least one tax rule with the line item;

associating a tax rate with the tax rule;

applying the tax rate to the line item;

storing the result of applying the tax rate;

outputting the result of applying the tax rate; and

converting the result of applying the tax rate to a format for transmission.