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Adsense Taxation Issues

         

whizkiddo

11:10 am on Nov 13, 2003 (gmt 0)

10+ Year Member



Well its been a while since the tax issue was raked up. I would like to know which cheque will be sent (October earnings will be sent or held up?) before it becomes compulsary to clear up everything. Getting the TIN or saying u r not liable for it; i mean. I hope Google gives us publishers at least 15-20 days as we also need to clear up things with our accountants. Or will they claim that the notice that they have already given was a fair early warning?

Anything that anyone has heard on this issue of late? I bet the adsense forum is gonna heat up a lot when this finally happens. Would hate to be in your shoes at that time Jenstar ;)

IanTurner

11:19 am on Nov 13, 2003 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



I haven't heard anything more at all on this, they notification said early November is when they would be asking for info from Publishers.

communitynews

12:39 pm on Nov 13, 2003 (gmt 0)

10+ Year Member



Has anybody asked the AdSense team about just when we'll be able to enter our tax ids? "Early November" will be over in a few days.

lgn1

12:44 pm on Nov 13, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Does drop shipping count as US presence for taxation?

I see no difference in the US company shipping the products to me,and for us to ship them back to the USA, over having our supplier shipping directly to the customer directly.

I know that sales tax is a different kettle of fish, but im
only interested in the Fed Tax as it relates to Google Adsense Program.

nakulgoyal

3:33 pm on Nov 13, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I don't think there will be any TAX issues for people outside US/Canada/UK. What do ya say?

robho

6:06 pm on Nov 13, 2003 (gmt 0)

10+ Year Member



I don't think there will be any TAX issues for people outside US/Canada/UK.

This has all been covered a while back - there are no US tax issues for anybody who does not have a "business presence" in the US.

The exact definition of "business presence" was initially confused due to some rather broad and inaccurate wording by Adsense (which still hasn't been fixed), but just having non-owned server/webspace in the US is OK (no presence).

In most countries (not just Canada/UK), local (national) tax is likely to be payable on any profits from the Adsense earnings of course.

lgn1

6:36 pm on Nov 13, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I don't consider having your us supplier drop shipping parcels as "business presence", so I guess I will take the simple route and answer no to the US presence issue.

If I pay tax to the Americans, then I get a tax rebate from
the Canadian government as we have a recepical tax agreement. I rather keep things simple, and avoid as much paperwork as possible.

whizkiddo

8:15 pm on Nov 13, 2003 (gmt 0)

10+ Year Member



Robho, as far as I remember, that point you mention about non owned hosting meaning a non business wasnt cleared up. How are you so sure that this is what it means? I remember people saying that irrespective of our interpretations the final meaning will be that which Google's lawyers make it to be.

onfire

8:29 pm on Nov 13, 2003 (gmt 0)

10+ Year Member



I emailed Adsense support today asking when they would be ready to collect the TAX info, as its now nearly the middle of Nov and the beginning has passed us by already.

They say!

<snip>

I just asked if there was now a delay, and what affect it would have on Octobers payments

Will let you know what i get back.

[edited by: Jenstar at 8:31 pm (utc) on Nov. 13, 2003]
[edit reason] Sorry, no email quotes please, as per TOS [/edit]

div01

10:00 pm on Nov 13, 2003 (gmt 0)

10+ Year Member



How about summarizing that email?

onfire

10:20 pm on Nov 13, 2003 (gmt 0)

10+ Year Member



I will just as soon as i get a reply.

what was cut out, was only what they say on the learn more tax page.

thought it would be ok, sorry!

However i will give you an summary on the reply if i get one.

robho

12:02 am on Nov 14, 2003 (gmt 0)

10+ Year Member



I remember people saying that irrespective of our interpretations the final meaning will be that which Google's lawyers make it to be.

Yes, in the previous thread on the subject [webmasterworld.com...] I described the reply I had received from Google when I asked for clarification - it was a carefully worded canned reply with lots of legal disclaimers, no doubt cleared by their lawyers.

As a reminder, Google said in essence using a third-party hosting service or server, or using a US mailing address, is NOT (by itself) a business presence.

Other things might be a business presence, such as owning a server (physical hardware you have the right to do what you want with) or having employees in the US (connected with the adsense income). The next 15 lines or so were disclaimers (so here's mine: your situation may vary, check locally or ask Adsense).

If you want the full chapter-and-verse on what their lawyers are basing this on, read the OECD "Clarification on the application of the permanent establishment definition in e-commerce" report of 22 Dec 2000. That's the international agreement that covers this stuff.

whizkiddo

3:54 am on Nov 14, 2003 (gmt 0)

10+ Year Member



do I have a sixth sense or what?

Today i log in and the page opens onto the tax page, lots of forms options and tons to read...gotto get back

OK ppl so u need to fill ur adsense tax forms ASAP.

GrantNZ

3:58 am on Nov 14, 2003 (gmt 0)

10+ Year Member



Tax information.

Well, their new form was easy to go through when I logged in just now. Google does it again, nice and easy.

whizkiddo

4:15 am on Nov 14, 2003 (gmt 0)

10+ Year Member



Well it has been pretty easy for me. Just to be sure I went through with the form that they have created. As I had thought previously, I was told that I fell into the "No US service" category.

Kudos to Google for making it easy and clear though the support is sure to get bombarded today.

Accordingly I was required to sign and verify (inputting your name constitutes as sign) , my IP address and time of signing were logged.

I was then taken to a thank you screen , told my payments would continue as before. FOr information payments after 30th November will be held up, that means your next cheque wont be posted unless you fill one of these forms.

moltar

4:21 am on Nov 14, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Yes and it mentioned on the bottom of one of the screens that simply having hosting services in US does not mean "presence". Most of us should be good now :)

alexandra

4:32 am on Nov 14, 2003 (gmt 0)

10+ Year Member



but why does google want to record our computer`s IP?

div01

4:34 am on Nov 14, 2003 (gmt 0)

10+ Year Member



Phew, done.

div01

4:41 am on Nov 14, 2003 (gmt 0)

10+ Year Member



Does Google send out a confirmation email after you fill out the form? I notice that the 'tax info' tab is still there after you're done...probably for any future changes, but I'd feel much better with a confirmation.

1milehgh80210

4:45 am on Nov 14, 2003 (gmt 0)

10+ Year Member



can't send mine-getting server error message :{

whizkiddo

7:20 am on Nov 14, 2003 (gmt 0)

10+ Year Member



probably 2 many people doing it at the same time. Yeah I would also like a confirmation message or at least a green light when we log-in saying that tax info is up to date and payments wont be held up.

onfire

7:26 am on Nov 14, 2003 (gmt 0)

10+ Year Member



Well there you go, sent an email yesterday and today bang there's the tax forms, good service or what.

Anyway they did say that you will be notified by email when the interface has been setup and they are ready to starting collecting the tax info.

tombola

8:19 am on Nov 14, 2003 (gmt 0)

10+ Year Member



Finally a clear definition of "presence in the US".

Nice work Google!

creative craig

8:33 am on Nov 14, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Simple and easy to fill in, no hassle from Google in my eyes :) Wheres my cheque though ;)

adfree

9:03 am on Nov 14, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Now that gets me started:

I own a US corporation (with board and shareholders and stuff). But I am risiding in Germany (found the company when I lived in the US).

Now, I have been paying Federal Corp. and State Corp. tax, I won't change that. All expenses and sales occur in the US.
I do not have any employees.

Now, in order to confim my EIN with Adsense tax info I will have to confirm to live and work in the US, which I am not.

I am stuck in the middle, any idea?

Thanks, Jens

level80

9:32 am on Nov 14, 2003 (gmt 0)

10+ Year Member



My suggestions are:-

either:-

a) Go through the Google multiple choice questions or

b) Send an e-mail to Google Adsense asking what to do & explaining your complicated circumstances

or

c) both of the above

Jenstar

9:37 am on Nov 14, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Google will not give out tax advice, they are simply providing some resources so publishers can figure it out on their own. From the new taxinfo page:

We've provided the tax information above as general guidance only. However, it is up to each publisher to understand and adhere to the appropriate tax rules.... For tax advice or more technical questions about how tax laws apply to you, please consult your tax adviser.

[google.com...] (bold mine)

There could be huge implications if Google started giving out tax advice, especially if the advice didn't turn out to be the best choice for the publisher ;) And if they did so and the advice was less-than-perfect, you could bet that someone would sue Google.

robho

11:52 pm on Nov 14, 2003 (gmt 0)

10+ Year Member



I own a US corporation (with board and shareholders and stuff). But I am risiding in Germany (found the company when I lived in the US).

Note that the "you" they're talking about is the US Corporation, not you as a person. The "I am a US person" applies to the corporation (it's a person) - the corp. name goes in the "name" field. See the IRS instructions they link to ("other entities").

But the simplest way to be sure is to ask Google, don't take my word for it (I'm no expert) although they have made fairly clear the W9 does apply to US corps.

Actually as your company is resident in the US, AND also resident in and subject to German tax (assuming you're the majority shareholder resident in Germany) you seem to have the worst of all worlds with that setup.

adfree

12:41 am on Nov 15, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Thanks all, asked G CService, no answer yet, guess they have to ask themselves.
RobHo: you seem to have the worst of all worlds with that setup...I hope you are NOT right (I kind of like guessed it though...).
Cheers, great w/end, Jens