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kevin, nevermind, it's their stupidity not programming the POS machine to calculate the discount automatically. >>
Yeah, any time you have to trust the cashier to know how to use a calculator you're in trouble.
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So who'll earn the tax difference in this game? irs, virgin, ae, or us? >>
I guess it depends on how they report the sale to the
Board of Equalization.
This is taken from the BOE Sales and Use Tax
FAQ:
7. What if I collect too much sales taxes reimbursement from my customers?
If you collect more than the amount of tax due, you must either return the excess amount to the customer or pay it to the state.
So, if they automatically pay whatever was collected as sales tax by the cashiers, then the state gets the money.
However, if they throw away the figure taken from the register and calculate the sales tax the right way, then they'll have money left over that was originally designated as sales tax. This way would be more logical if they want to catch mistakes made by the cashiers, but then Virgin could keep the difference.
If AMEX was only going to give them back the amount discounted before the tax I think the other Virgin stores would make sure that the discount was handled the same way. Otherwise, Virgin is out a lot of money.
Since there was no cash involved, I think it's entirely up to AMEX. If they're smart, they won't trust the cashiers to figure out how much Virgin is owed, they'll do it themselves. Which would ensure that Virgin doesn't get anything extra and I don't think the state would either. But, if AMEX automatically gives Virgin back whatever the receipt says, then Virgin still wins out.
I guess the customer is probably the only one that loses, but since so many people probably got ripped off like this, and since it looks like the management wanted it handled this way - it might be worth contacting the BOE and AMEX about.