Refunding a bank wire... What's the tax liability I may have?

Discussion in 'Legal Issues' started by NewTier, Feb 19, 2011.

  1. #1
    I receive a bank wire. And to refund it, I will be sending the same amount back to the person.

    What may be the tax implications? do the receiving and then sending get cancelled?

    If receiving and sending cancels each other out, is my tax liability $0? Or is it % of the amount I received or whatever?
     
    NewTier, Feb 19, 2011 IP
  2. AstarothSolutions

    AstarothSolutions Peon

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    You dont state where you are but in most cases the importance is around the "sale" not around the method of payment. If you've sold something and then the buyer has returned the item for a full refund then there is no net tax to pay (in most places) as the sale has been voided. It is different if you sell the item and then give a goodwill discount because it arrived damaged etc but the buyer is keeping it anyway.
     
    AstarothSolutions, Feb 20, 2011 IP