bolade
d8315f13ac
- Introduced fields: receipt_location, calculated_tax, is_depreciable, cca_rate, useful_life, and residual_value in DBReceipt model. - Updated process_document function to handle new receipt data attributes. - Enhanced DocumentProcessResponse schema to include new fields. - Updated document processing rules to incorporate tax calculation based on location and depreciation rules.
96 lines
6.5 KiB
Python
96 lines
6.5 KiB
Python
rule = '''
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### Rule Scenarios
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Impact of Signup Fields on Tax Calculation and Receipt Matching
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Impact of Signup Fields (Country and Province/State) on Tax Calculation and Matching**
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**Scenario 1:** User Location (Canada, Ontario) but Receipt from Another Location (e.g., Quebec)
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User's Location: Canada, Ontario (for tax and depreciation purposes).
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Receipt Location: The receipt comes from Quebec (the tax rules in Quebec are different from Ontario).
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What Happens:
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The sales tax rate should be applied based on the location of the receipt, not the user's profile location.
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**For example:**
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The user in Ontario will have 13% HST applied to their purchases.
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If the receipt is from Quebec, the QST (Quebec Sales Tax) of 9.975% applies instead.
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**Scenario 2:** User Location (Canada, Ontario) and Receipt Location is Different Country (e.g., USA)
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User's Location: Canada, Ontario.
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Receipt Location: The receipt is from a business in the USA (e.g., New York).
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**What Happens:**
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Sales Tax should not be applied for international transactions (USA in this case) unless the user is importing or there is a customs duty involved.
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The system will not apply a Canadian sales tax to the receipt from the USA, but the foreign exchange (FX) rule will apply because there is a mismatch between currencies (USD vs. CAD).
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**Scenario 3:** User Location (USA, New York) but Receipt from Another Location in the Same Country (e.g., California)
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User's Location: USA, New York (for tax purposes).
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Receipt Location: The receipt is from California (still in the USA, but the sales tax rate is different).
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**What Happens:**
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Sales tax should be applied based on the location of the receipt, not the user’s location, since the receipt was issued in California.
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California may have a different sales tax rate than New York.
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**Scenario 4:** User Location (Canada, Ontario) and Receipt Location with No Address Information
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User's Location: Canada, Ontario.
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Receipt Location: The receipt contains no clear shipping or billing address.
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**What Happens:**
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If the receipt does not have a clear location, the system will default to the user’s location for sales tax and depreciation.
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Action:
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Sales Tax: Apply the sales tax rate based on the user's location (Ontario). For example, 13% HST will be applied.
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Depreciation: Apply the depreciation rules based on the user’s location (Ontario), even if the receipt doesn’t have address information.
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**Summary of Actions in These Scenarios:**
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Sales Tax:If the receipt is from a different location (same country or foreign), use the location from the receipt for sales tax calculation.
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If the receipt is from a different country, don’t apply sales tax from the user's country but flag the FX discrepancy.
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If the location is missing, apply the user’s location sales tax by default.
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**Depreciation:** Always apply depreciation rules based on the user’s location, regardless of where the receipt is from.
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**FX (Foreign Exchange):** If the receipt is in a different currency, flag the FX difference for manual review but don’t fetch exchange rates.
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### 2. **Foreign Exchange (FX) Rule**
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**Purpose**: To handle discrepancies when transactions and receipts are in different currencies (e.g., USD vs. CAD).
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- **Action**: Identify the currency mismatch, but do not automatically fetch the exchange rate. Flag the FX difference for manual review, allowing the user to approve or adjust the balance.
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**Example**:
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1. A transaction in USD for $100, matched to a receipt in CAD for $125, results in an FX discrepancy of $25.
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2. The system flags the discrepancy for manual review by the user. The user can then approve the difference or adjust the amounts manually.
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### 3. **Depreciation Rule**
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**Purpose**: To calculate the depreciation for assets based on the Straight-Line Method (for accounting) or CCA Depreciation (Declining Balance) for tax purposes.
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**Action**:
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- Apply Straight-Line Depreciation (for accounting) across the asset’s useful life.
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- Apply CCA Depreciation (for tax purposes) using a declining balance method.
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**Example**:
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1. Straight-Line Depreciation: An asset purchased for $10,000, with a 5-year useful life and a residual value of $1,000, will have an annual depreciation of:
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- (10,000 - 1,000)/5 = 1,800 per year for 5 years.
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2. CCA Depreciation: A truck purchased for $20,000, eligible for 30% CCA per year. The depreciation will be:
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- Year 1: 20,000 x 30% = $6,000
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- Year 2: (20,000 - 6,000) x 30% = $4,200
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- The depreciation will decline each year as the book value reduces.
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### 4. **Meals & Entertainment Tax Deduction Rule**
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**Purpose**: To apply the correct tax deduction for Meals & Entertainment expenses.
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**Action**:
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- For Tax Purposes: Only 50% of the total receipt amount is deductible.
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- For Accounting Purposes: 100% of the total receipt amount is deductible.
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- Sales Tax: The full sales tax will be deducted for accounting purposes.
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**Example**:
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1. A $100 meal receipt for a business dinner:
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- **Tax Purposes**: Only $50 of the total amount is deductible.
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- **Accounting Purposes**: The full $100 is deductible.
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2. If the sales tax on the meal is $12, the entire $12 is included in the accounting deduction, but for tax purposes, the $50 deduction will reflect the adjusted amount after the 50% rule is applied.
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### **When Location on Receipt is Different from User's Location**
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**1. Sales Tax**:
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- **Scenario 1**: If the **receipt's location** is different (e.g., receipt from Quebec for a user in Ontario), the **sales tax** is applied based on the **receipt's location** (Quebec sales tax).
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- **Scenario 2**: If the **receipt** is from a different **country** (e.g., USA), the **system flags** the **currency mismatch** but does not apply **Canadian sales tax**.
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**2. Depreciation**:
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- Depreciation is always calculated based on the **user's location**, not the receipt's location.
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- **Depreciation Method** for **Canada (Ontario)**: **CCA method** will apply, regardless of where the receipt comes from.
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**3. FX Handling**:
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- If the receipt is in a different **currency** (e.g., USD for a CAD-based user), the system will **flag FX differences** for manual review but won’t fetch exchange rates.
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**4. General Process**:
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- When the **receipt location** is different from the **user's location**, ensure that the **tax and depreciation** are correctly applied based on the **receipt's data**.
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- For **foreign transactions**, ensure that **FX differences** are flagged for user review.
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- For **missing location information**, apply **user’s location** by default for tax and depreciation.
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''' |