[Foundation-l] [ANNOUNCEMENT] Greenspan illustration project

[Ray Saintonge]

Thomas Dalton wrote:
> On 03/11/2007, GerardM <gerard.meijssen at gmail.com> wrote:
>   
>> Hoi,
>> Indeed. But in all instances, it is none of our business nor of the WMF how
>> the donor handles it re his taxes. When we accept a gift and spend it within
>> the limitations associated with that gift, how the WMF pays applicable taxes
>> is of no concern to either the donor or to the Wikimedia community as it is
>> part and parcel of spending the money.
>>
>> It is unlikely that the US tax office will restrict us from spending money
>> outside the US and consequently I do not understand at all why it is
>> relevant to consider taxes.
>> Thanks,
>>     GerardM
>>     
> When you employ or hire someone, there are often taxes to be paid by
> both parties. If those parties are in different countries, the taxes
> can get a little confusing. They certainly need to be considered. (I
> expect they have been, and the people involved know what they're
> doing, I just think it odd not to mention it anywhere, so thought I'd
> double check.)
Such amounts which involve payments for goods or services are generally 
not gifts, and would be taxable to the individual where he resides.  It 
is the general rule in international tax treaties that personal income 
taxes on income as an independent contractor are payable in the country 
where the person resides rather than the country that is the source of 
the income.  It is up to the individual involved to report the income 
according to the laws of his own country, and it is his personal duty to 
maintain an accounting for what he receives.  For residents of some 
countries like the UK and Australia, which do not have a tax year that 
is the same as the calendar year, that includes keeping track of the tax 
year in which the payments were received.  Anyone who fails to report 
the income according to the laws of his own country does so at his own 
risk.  As a practical matter no country is likely to pursue audits for 
such small amounts where the audit costs would be significantly larger 
than any tax money that might be recovered.

Ec