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A common tax scenario
Message
From
23/05/2012 13:40:04
 
 
To
23/05/2012 13:23:33
Al Doman (Online)
M3 Enterprises Inc.
North Vancouver, British Columbia, Canada
General information
Forum:
ASP.NET
Category:
Other
Environment versions
Environment:
VB 9.0
OS:
Windows 7
Network:
Windows 2003 Server
Database:
MS SQL Server
Application:
Web
Miscellaneous
Thread ID:
01544104
Message ID:
01544167
Views:
32
>Re: the calculation, I'd just back out the values in the reverse order they were originally calculated.
>
>If you start with total value $574.88 (actually $575.875), that is 1.095 * ( Price + FedTax ), so
>
>( Price + FedTax ) = 574.88 / 1.095, = 525.00
>
>Then, ( Price + FedTax ) = Price * 1.05, so
>
>Price = ( Price + FedTax ) / 1.05, = 525.00 / 1.05, = 500.00
>
>If you want to do it all in one step:
>
>T = total dollar value including all taxes
>P = provincial tax rate as a decimal e.g. 9.5% = 0.095
>F = federal tax rate as a decimal e.g. 5% = 0.05
>I = item price
>
>Then I = ( T / ( 1 + P ) ) / ( 1 + F )

We do not have the total dollar value including all taxes, as defined here with the T variable. This is the hole problem here we have to workaround. The only thing I have is the total amount for the taxes, which is 74.88$ in our example. From that amount, we have to go back to 500.00$, as we test for Quebec presently. So, this is why, in the other thread, Gregory is working on that fancy method to reverse engineer the entire process.
Michel Fournier
Level Extreme Inc.
Designer, architect, owner of the Level Extreme Platform
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