# US 2004/0002906 A1 · Tax transaction system

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- Number: US 2004/0002906 A1
- Document ID: US20040002906A1
- Status: Published application
- Kind: A1
- Application number: 10/429,014
- Filed: 2003-05-01
- Published: 2004-01-01
- Earliest claimed: 2002-05-02
- Assignees: Accenture Global Services Limited
- Inventors: Druvaan B. Von Drehnen; Sean Shine; Timothy M. Finnegan; David Roland Hunter; Stephanie Lynn Willette
- Web page: https://patentgrep.com/patent/US20040002906A1

## CPC

- G06Q 30/02: Marketing; Price estimation or determination; Fundraising
- G06Q 20/10: specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
- G06Q 20/207: {Tax processing}
- G06Q 20/40: Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
- G06Q 30/0613: {using intermediate agents}
- G06Q 30/0641: {utilising user interfaces specially adapted for shopping}
- G06Q 40/123: {Tax preparation or submission}
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR

## Abstract

A tax transaction system, and combined sale and tax transaction systems, are disclosed for use in electronic commerce for the deduction of a tax, which may be a sales tax, value-added tax, or any tax on income related to a transaction or taxing event. A trusted third party server system (300, 1060) may be provided which handles the calculation and/or deduction of a tax, e.g. related to a transaction of the sale of a good or service from a seller (200) to a buyer (100), on behalf of the seller, and which further provides for the remission of the tax to a tax collection agency (500, 1090), and which may perform the entire sale and tax transaction by proxy on behalf of the seller. Software modules (1070) including objects which embody instruction code and data structures to enable integral tax calculation and collection solutions, including multi-jurisdictional tax calculation, remission and reporting, and even real time tax collection at point of sale, are provided. Such modules may form part of a data processing system hosted by a third party to a taxing event transaction, or be distributed in a pervasive manner, such as via the Internet in multiple server locations, as a downloadable client module, embodied in multiple hardware devices such as smartcards, electronic tags, radio frequency identification (RFID) tags.

## Claims

### Claim 1

A tax transaction system, for handling the calculation and deduction of a tax due to a tax collection agency, comprising;
first data communication means (1020,1030) to receive input (1010) relating to a taxing event including a first identifier identifying the tax jurisdiction in which the event has occurred and a second identifier identifying information on parties to the taxing event,
a first database (1080) with tax rate and taxing event data for a plurality of tax jurisdictions linked to said first and second identifiers,
first data processing means (1070) for calculating the tax due on the taxing event by reference to said first database,
second data communication means linked to a third party computer system (1090),
a means (1060) for performing a tax remission transaction to said third party computer system (1090) based on said calculated tax due for payment associated with said taxing event.

### Claim 2 (depends on 1)

The system of claim 1, further comprising;
a second database (1050) for storing details of the taxing event and of the calculated tax due for payment associated with that event,
database management means (1050) for later performing a tax remission transaction from said third party computer system to a tax collection agency computer system (1090).

### Claim 3 (depends on 1)

The system of claim 1, wherein the first data communication means comprises a browser (1030) and a website (1020), and wherein at least some of said identifiers are stored in a client database (1010).

### Claim 4 (depends on 1)

The system of claim 1, wherein said taxing event is a tax transaction between two parties involving a direct tax on income or capital, and wherein the first data processing means (1070) comprises further means for dividing a record of the tax transaction into a net component and a tax component after said first data processing means has calculated the tax due on the tax transaction, further comprising means to create a dual transaction comprising an electronic cash, credit or banking transaction for the net component between the two parties or to the taxpayer, and an electronic cash, credit or banking transaction for the tax component between the two parties or to the relevant tax collection agency.

### Claim 5 (depends on 1)

The system of claim 1, wherein said taxing event is a sale transaction between a buyer and a seller involving an indirect or sales tax, and wherein the first data processing means (1070) comprises further means for dividing a record of the sale transaction into a net component and a tax component after said first data processing means has calculated the tax due on the sale transaction, further comprising means to create a dual transaction comprising an electronic cash, credit or banking transaction for the net component from the buyer to the seller, and an electronic cash, credit or banking transaction for the tax component to the relevant tax collection agency.

### Claim 6 (depends on 4, 5)

The system of claim 4 or claim 5, wherein the first data processing means (300) is adapted to cause the electronic remission of the tax component to said tax collection agency computer system (1090), when performing said tax or sale transaction, in real time.

### Claim 7 (depends on 5)

The system of claim 5, wherein the sale transaction is initiated by the buyer clicking on a button displayed on a website (1020) offering a good or service for sale.

### Claim 8 (depends on 5)

The system of claim 5, wherein the sale transaction is initiated by the detection of an electronic smart tag carrying product price data read by a point of sale device (130).

### Claim 9 (depends on 1, 2, 3, 4, 5, 6, 7, 8)

The system of any of claims 1 to 8, wherein the first data processing means (1070) for calculating the tax due on the taxing event is embodied in a software module or object comprising instruction code and data structures, residing in any one of:
a client side computer system,
a thin client,
a server side computer system,
a computer network,
a mobile computing device,
a programmable IC device embedded in a smartcard or RFID tag,
a computer-readable storage media,
a software agent.

### Claim 10

The system of any one of the preceding claims, comprising means to calculate a tax collection and payment commission charge, per tax or sale transaction.

### Claim 11

A software module or object (1070) comprising:
instruction code for receiving input from a first data communication means (1020,1030) relating to a taxing event including a first identifier identifying the tax jurisdiction in which the event has occurred and a second identifier identifying information on parties to the taxing event,
a data structure with tax rate and taxing event data for one or more tax jurisdictions linked to said first and second identifiers,
a tax calculation engine for calculating the tax due on the taxing event by reference to said data structure or to an external database,
instruction code to communicate output with a second data communication means linked to a third party computer system (1090),
instruction code to enable a means (1060) for performing a tax remission transaction to said third party computer system (1090) based on said calculated tax due for payment associated with said taxing event.

### Claim 12 (depends on 11)

The software module or object (1070) of claim 11, arranged in a framework of components further comprising any one or more of:
a document management component, a funds function component, a tax return preparation component, and a reporting and analysis functional component.

### Claim 13 (depends on 11, 12)

A computer-readable storage media, instruction signal or carrier wave, when embodying the software module or object (1070) of claim 11 or claim 12.

### Claim 14

A combined sale and tax transaction server system, comprising;
first data communication means (260) to receive a confirmed offer of sale or sale transaction record from a first client device ( 200) including a first identifier identifying the tax jurisdiction in which the sale has been transacted and a second identifier identifying the location of the buyer,
a first database (310) with tax rate and taxing event data for a plurality of tax jurisdictions linked to said first and second identifiers,
first data processing means (300) for calculating the tax due on the sale transaction by reference to said first database,
a second database (320) for storing details of the transaction record and of the calculated tax due for payment associated with that transaction,
second data communication means linked to a second client computer (500),
a means (360,400,420) for performing a tax remission transaction to said second client computer based on said stored calculated tax due for payment associated with that transaction.

### Claim 15 (depends on 14)

The system of claim 14, further comprising;
database management means (330) for periodically aggregating stored calculated taxes due for payment for a plurality of transactions by tax jurisdiction, and
a means for performing a batch tax remission transaction to said second client computer based on said aggregation.

### Claim 16 (depends on 14)

The system of claim 14, wherein the first data processing means (300) comprises further means for dividing said record into a net component and a tax component after said first data processing means has calculated the tax due on the sale transaction, further comprising means to create a dual transaction comprising an electronic cash, credit or banking transaction for the net component from the buyer to the seller, and an electronic cash, credit or banking transaction for the tax component to the relevant tax collection agency.

### Claim 17 (depends on 16)

The system of claim 16, wherein the means to create a dual transaction creates the offer and confirm stages of the sale transaction in negotiation with the first client computer (200), and comprises a transaction engine to finish the settlement stages of the sale transaction in negotiation with an electronic cash instrument, or credit (410) or banking (400) client computer.

### Claim 18 (depends on 16, 17)

The system of claim 16 or claim 17, wherein the first data processing means (300) is adapted to electronically remit the net component of the finished sale transaction to said first client computer (200) and to remit the tax component to said second client computer (500), in real time.

### Claim 19 (depends on 14, 15, 16, 17, 18)

The system of any of claims 14 to 18, wherein the sale transaction is initiated by the buyer clicking on a button displayed on an interactive internet site offering a good or service for sale, at a buyer client computer (120), communicated to a seller server computer (200).

### Claim 20 (depends on 14, 15, 16, 17, 18)

The system of any of claims 14 to 18, wherein the sale transaction is initiated by the detection of an electronic smart tag carrying product price data read by a point of sale device (130), and transmitted to said first client computer (200).

### Claim 21 (depends on 14, 15, 16, 17, 18)

The system of any of claims 14 to 18, wherein the sale transaction is initiated by the scanning of a bar code or UPC code by a point of sale device (130), and transmitted to said first client computer (200).

### Claim 22 (depends on 14, 15, 16, 17, 18)

The system of any of claims 14to 18, wherein the confirmed offer for sale or sale transaction record is received from a first client device comprising a third party transaction engine (140).

### Claim 23 (depends on 14, 15, 16, 17, 18)

The system of any one of claims 14 to 18, wherein the sale transaction is initiated by a buyer from a mobile computing device (110).

### Claim 24 (depends on 14, 15, 16, 17, 18, 19, 20, 21, 22, 23)

The system of any one of claims 14 to 23, comprising means to calculate a tax collection and payment commission charge, per sale transaction.

### Claim 25 (depends on 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24)

The system of any one of claims 14 to 24, comprising means to compile reports from data stored in said second database (320) of sales records to said first client computer (200), and/or reports of calculated taxes due and remitted to said second client computer (500).

### Claim 26

Computer software which when executing on a network of computers is adapted to perform the steps of;
receiving (600,700) via a first data communication means (260) a confirmed offer of sale (700) or sale transaction record (600) from a first client device (200) including a first identifier identifying (610, 724) the tax jurisdiction in which the sale has been transacted and a second identifier identifying (620,728) the location of the buyer,
providing for storage in a first database (310) of tax rate and taxing event data for a plurality of tax jurisdictions linked to said first and second identifiers,
calculating (640,736) the tax due on the sale transaction by reference (630,732) to said first database,
providing (650,756) for storage in a second database (320) of details of the transaction record and of the calculated tax due for payment associated with that transaction,
communicating with a second client computer (500),
performing (680,744) a tax remission transaction to said second client computer based on said stored calculated tax due for payment associated with that transaction.

### Claim 27 (depends on 26)

Computer software according to claim 26, further adapted to perform the steps of;
periodically aggregating stored calculated taxes due for payment for a plurality of transactions by tax jurisdiction, and
performing a batch tax remission transaction (880) to said second client computer (500) based on said aggregation.

### Claim 28 (depends on 26)

Computer software according to claim 26, adapted to perform the steps of; dividing said record into a net component and a tax component after calculating the tax due on the sale transaction,
creating a dual transaction comprising an electronic cash, credit or banking transaction (740) for the net component from the buyer to the seller, and an electronic cash, credit or banking transaction (744) for the tax component to the relevant tax collection agency.

### Claim 29 (depends on 28)

Computer software according to claim 28, wherein said creating a dual transaction creates the offer and confirm stages (710,712,714,716) of the sale transaction in negotiation with the first client computer (200), and comprises providing for a transaction engine to finish the settlement stages of the sale transaction in negotiation with an electronic cash instrument, or credit (410) or banking (400) client computer.

### Claim 30 (depends on 28, 29)

Computer software according to claim 28 or claim 29, further comprising providing for electronically remitting the net component of the finished sale transaction to said first client computer (200) and remitting the tax component to said second client computer (500), in real time.

### Claim 31 (depends on 26, 27, 28, 29, 30)

Computer software according to any of claims 26 to 30, providing for initiation of the sale transaction by the buyer clicking on a button displayed on an interactive internet site offering a good or service for sale, at a buyer client computer (120), communicated to a seller server computer (200).

### Claim 32 (depends on 26, 27, 28, 29, 30)

Computer software according to any of claims 26 to 30, providing for initiation of the sale transaction by the detection (810) of an electronic smart tag carrying product price data read by a point of sale device (130), and transmitted to said first client computer (200).

### Claim 33 (depends on 26, 27, 28, 29, 30)

Computer software according to any of claims 26 to 30, providing for initiation of the sale transaction by the scanning (810) of a bar code or UPC code by a point of sale device (130), and transmitted to said first client computer (200).

### Claim 34 (depends on 26, 27, 28, 29, 30)

Computer software according to any of claims 26 to 30, providing for the confirmed offer for sale or sale transaction record to be received from a first client device comprising a third party transaction engine (140).

### Claim 35 (depends on 26, 27, 28, 29, 30)

Computer software according to any of claims 26 to 30, providing for initiation of the sale transaction by a buyer from a mobile computing device (110).

### Claim 36 (depends on 26, 27, 28, 29, 30, 31, 32, 33, 34, 35)

Computer software according to any of claims 26 to 35, providing for calculating (748) a tax collection and payment commission charge, per sale transaction.

### Claim 37 (depends on 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36)

Computer software according to any of claims 26 to 36, comprising providing for compiling reports (752) from data stored in said second database (320) of sales records to said first client computer (200), and/or reports (760) of calculated taxes due and remitted to said second client computer (500).

### Claim 38 (depends on 26, 27, 28, 29, 30, 31)

Computer software according to any of claims 26 to 31, encoded in a downloadable (900) module and configured to interface (910) with a shopping cart or one click purchase application running on a client computer in a client server network.

### Claim 39 (depends on 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38)

A computer-readable storage media, instruction signal or carrier wave, when embodying the computer software as claimed in any one of claims 26 to 38.

### Claim 40

A method of performing a tax transaction, comprising the steps of;
a buyer (100) making an offer to the seller (200) for the purchase of a good or service,
the seller confirming the offer and completing the sale transaction (150),
the seller transmitting a record of the confirmed sale transaction to a tax collection service provider (300),
the tax collection service provider handling the tax transaction (250) by proxy, the tax collection service provider remitting funds of the tax due to a tax collection agency (500), and
the tax collection service provider billing the seller for the tax due amount plus a commission.

### Claim 41 (depends on 40)

The method of claim 40, wherein said tax transaction (250) comprises;
receiving (600) the record of the confirmed sale transaction record from the seller,
determining (610) the relevant tax jurisdiction from a first identifier associated with the sale transaction record, linked to the location of the seller,
determining (620) the buyer's location from a second identifier associated with the sale transaction record, for deciding the applicability of the taxing event,
interrogating (630) a database to determine what tax and what tax rate is applicable to the transaction,
calculating (640) the tax due for the sale transaction, and
storing (650) a sale transaction record and the calculated tax due amount.

### Claim 42 (depends on 40)

The method of claim 40, wherein said remitting and billing steps comprise;
remitting (680) to the tax collection agency in a later tax transaction, an aggregated tax due amount on behalf of the said seller, or on behalf of different sellers subscribing to the service, and
periodically reporting and billing (670) the seller(s) for the aggregated tax amount due.

### Claim 43

A method of performing a combined sale and tax transaction, comprising the steps of;
a buyer (100) making an offer to the seller (200) for the purchase of a good or service,
the seller confirming the offer but not completing a sale transaction (150),
the seller transmitting a record of the confirmed offer to a tax collection service provider (300),
the tax collection service provider handling by proxy for the seller the completion of the sale transaction (150) between the buyer and the seller and the tax transaction (250) between the seller and the tax collection agency.

### Claim 44 (depends on 43)

The method of claim 43, wherein the combined sale and tax transaction (150,250) comprises;
receiving (700) a confirmed offer for the purchase of a good or service by the buyer from the seller,
checking (710) the validity of the buyer's sale instrument with a settlement agency or credit company,
if the offer is valid, returning (714) a confirm transaction message to the seller,
if the offer is invalid, returning (716) a reject sale transaction message to the seller,
determining (724) the relevant tax jurisdiction linked to the location of the seller,
determining (728) the applicable taxing event by reference to the buyer's location,
interrogating (732) a database to determine what tax and what tax rate is applicable to the transaction,
calculating (736) the tax due amount,
committing (744) the buyer's settlement agency or credit company to pay the tax due amount of the total transaction to the tax collection agency,
performing (720) the sale transaction (150) on behalf of the seller, and
committing (740) the identified buyer's settlement agency or credit company to pay the seller for the sale amount net of tax for the transaction.

### Claim 45 (depends on 44)

The method of claim 44, further comprising the step of;
committing (748) the seller to pay a commission to the tax collection service provider for performing the service.

### Claim 46 (depends on 44)

The method of claim 44, further comprising the steps of;
storing (756) the sale and tax transaction record in a database,
providing (752) financial activity reports to the seller's computer system, and providing (760) tax returns if required by the tax collection agency on behalf of the seller.

### Claim 47 (depends on 43)

The method of claim 43, wherein the combined sale and tax transaction (150,250) comprises;
receiving (700) a confirmed offer for the purchase of a good or service by the buyer from the seller,
checking (710) the validity of the buyer's sale instrument with a credit company,
if the offer is valid, returning (714) a confirm transaction message to the seller,
if the offer is invalid, returning (716) a reject sale transaction message to the seller,
determining (724) the relevant tax jurisdiction linked to the location of the seller,
determining (728) the applicable taxing event by reference to the buyer's location,
interrogating (732) a database to determine what tax and what tax rate is applicable to the transaction,
calculating (736) the tax due amount,
committing the buyer's credit company to pay (440) the sale amount of the transaction net of tax to the seller and to pay (420) the tax due amount to the tax collection agency.

### Claim 48

A method for performing real time direct taxation at point of sale, comprising the steps of;
a buyer presenting an electronically-readable payment device at a point of sale,
reading (800) the payment device with a point of sale device for authorization to complete the sale transaction,
scanning (810) a price tag,
identifying (830) and calculating the sales tax amount due,
the seller confirming (820) the sale transaction to the buyer and completing the sale transaction,
the seller creating (870) a sales tax payment transaction from the seller to the tax collection agency of the sales tax due for the said sale transaction, and simultaneously performing said sales tax payment transaction.