Jacques Le Roux wrote:
> 
> Hi BOb,
> 
> Just curious, what is exatly tax-on-tax, is this really existing
> somewhere?
> I remember a colleague speaking about legal issue with this kind of
> things, at least in Europe (we had a such thing once in France 
> in nineties and it was a real concern)
> 
> Thanks
> 
> Jacques
> 

Hey Jacques,

To be honest the person I was talking about this requirement for would have
been more of an expert than me so I took him at his word that it existed.  I
did a quick google and came up with a reference for support for this feature
in ZOHO
(http://blogs.zoho.com/general/support-for-stacked-or-compound-taxes-in-invoices)
-- interesting enough the example they site is in my own Canada -- in some
provinces.

In Canada we have two taxes in most provinces.  A Goods and Services tax (5%
where I am) and a Provincial tax (8% where I am).  So if I were to set these
up in Ofbiz I would setup two tax authorities (a federal and a provincial)
with appropriate Geo and the TaxAuthorityRateProduct for the two rates. 
Anyway, apparently in some provinces (Quebec is the one they site) it is a
compound tax where ... GST = Total * GST_RATE and PST = (TOTAL + GST) *
PST_RATE.  Apparently Quebec has 7% PST which (again) is news to me.  In
Ontario (where I am) I do not believe our PST is a compound tax rate ...

In my head I also figured that there may be places that have "bad stuff"
taxes like Cigarette or Gas taxes that are VAT taxes but they also may have
a standard sales tax that would apply as a compound/tax-on-tax tax.
-- 
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