After the Iranian government planned to implement a new national sales tax, businesses country-wide shut their doors for two days. The new tax would require merchants to pay the government 3% of their gross sales receipts.

In turn, that would lead to price increases passed on to consumers to make up the losses.

Even though the protest paid off and the government temporarily backed down from the new tax, it’s only a matter of time until another sales tax measure is introduced. They’re all part of President Ahmadinejad’s plan to revamp Iran’s banking system and tax code, which are considered antiquated.

The couple — whose names haven’t been released by authorities — were traveling from Germany back to their home in Sweden when border patrols stopped their van. An inspection revealed they had 4.2 liters of hard liquor, 27 liters of wine and a whopping 2,692 liters of beer.

Authorities subsequently searched the couple’s home and found even more alcohol — in total, they’d brought 24,000 cans of beer into the house. Along with the stash was a journal which included people’s names and addresses, along with different types and amounts of beer.

Police officials assumed the ledger was a master list for an on-going smuggling operation, but the couple claimed the alcohol was for personal use. They had upcoming birthdays, wedding parties and holiday celebrations to purchase alcohol for, and figured they’d get it from Germany, where the goods were taxed at a much lower rate.

After hearing the couple’s explanation, the court threw out the smuggling charges and ordered the alcohol supply be returned.

A Pennsylvania-based construction company was in the practice of contracting a cleaning and maintenance service to clean sites while they were being worked on. Even though cleaning services are usually considered a taxable service, the construction company believed the cleaning was an integral part of the construction process and should be considered tax-exempt.

After sending an inquiry to the state DOR, the ruling found that all cleaning services were tax-exempt, except for the final cleaning that took place at the end of a project. Since the cleaning service removed debris and other materials which helped the work site meet safety requirements, it was needed to keep the project going.

However, once the final cleaning took place, it was no longer a part of the construction process. Although it was still needed to obtain a certificate of occupancy for a building or house, those services — dusting, waxing, cleaning, etc. — met the definition of taxable cleaning services.

Cite: Letter Ruling, No. SUT-08-010, June 16, 2008.

Editor’s note: Regs vary widely from state to state. If you have a specific sales and use tax question, consult your state’s DOR for more information.

A 21-year-old Swedish musician recently felt the sting of import taxes. As a part of his rocker lifestyle, he’s claiming he should be allowed to import 12 gallons of liquor, 16 gallons of wine and 300 beers into Sweden without having to pay the hefty import taxes.

According to the rocker, he drinks “a great deal more than the average Swede.”

“I’m a singer in a rock band and whiskey is a big part of it,” said the musician in front of an administrative court hearing.

However, the hearing denied his exemption — under liquor import rules, any alcohol brought in for “individual consumption” must be taxed.

A recent press release from Connecticut’s Department of Revenue says the state’s not going to take Sunday afternoon activities lightly. Any vendors who sell at a flea market, trade show, craft show, antique market or fair in the state must obtain a sales and use tax permit from DOR.

What if a vendor only wants to sell on one day? No exceptions, claims the state. An individual, business or corporation needs to have the permit on hand before a sale is made, and it needs to be prominently displayed at the vendor’s table or booth.

In case you’re thinking the state’s blowing smoke, failure to obtain a tax permit will result in a $500, three months in prison, or both.

Patrons of the Antiques Roadshow — now’s the time to panic.

After state alcohol beverage tax regulations approved on June 10, 2008, California’s State Board of Equalization (SBE) will be taxing flavored malt beverages as distilled spirits. Previously, they were qualified as beer for taxation purposes.

What sounds like a small detail to the casual drinker could have serious implications for distributors — or really enthusiastic company picnics. The “beer rate” of taxation is currently $0.20 per gallon, but now that malt beverages are reclassified, they’ll be taxed at the distilled spirits rate of $3.30 per gallon.

In Louisiana, every game of bingo, if it’s played correctly, comes with serious tax implications. Many churches and non-profit organizations rent their game equipment and materials from a distributor. Game cards, numbered balls, that giant rotating cage — they’ve got to come from somewhere.

And those bingo card dabbers (either the electronic or old-fashioned versions) that mark off when you’ve got the right number? That’s where sales and use tax comes in. The bingo materials distributor leases these devices to a charitable organization, which in turn takes over partial ownership of the dabbers.

The charity releases the dabbers to players and pays the distributor for every dabber used in a game session. Because giving the dabber to a player is considered a separate leasing of tangible personal property, the transaction between the charity and each player is taxable.

And you thought it was as simple as pulling out numbered balls.

But the answer’s more complicated than you think.

A Wal-Mart store located in Bentonville, AR, sold both Starbucks frappuccino coffee drink and Yoo-Hoo chocolate drink in glass bottles. Unsure of whether or not these items were taxable or exempt, the company’s headquarters submitted an in-depth petition on behalf of its NY stores to the state’s advisory panel looking for clarification.

The Taxation and Finance Department issued good and bad news to the chain: Frappuccino is exempt, but tax needs to be collected on sales of Yoo-Hoo.

For this specific frappuccino beverage, the main ingredient used in its production is brewed coffee. The panel ruled the beverage is, essentially, a flavored, cold coffee, and coffee is exempt from sales tax. But the myriad of ingredients used in Yoo-Hoo don’t qualify for an exemption — although it contains small amounts of cocoa, it’s considered a non-carbonated, flavored soft drink.

After a lengthy tax dispute in a London courtroom, Procter & Gamble lawyers were able to successfully argue that Pringles are not potato chips.

Potato chips and potato-derived snacks (made from potato flour, potato starch, etc.) are subject to a 17.5% London sales tax. Pringles’ key defense — the “crisps” aren’t even made from potato — they’re slices of baked dough.

The snack eventually met the judge’s very “technical” three-pronged requirement for exemption:

1. They don’t look like a chip
2. They don’t feel like a chip, and
3. They don’t taste like a chip.

For purposes of tax exemption, Pringles aren’t “made from the potato,” said the judge. He didn’t specifically say what Pringles were, other than “tax-exempt.”

That’s the latest according to a new finding from Indiana’s Dept. of Revenue.

An auto exhaust systems manufacturer purchased steel-toed boots for its employees to use in the production process. Because the equipment was used in manufacturing a product, the company filed a claim for a use tax exemption on its purchases.

But Indiana DOR denied the exemption after a critical discovery: The company had purchased the steel-toed boots and sold them to its workers at a reduced cost instead of giving away the equipment for free.

Because of that move, the company was actually providing a benefit for its employees — the opportunity to purchase protective shoes at a reduced price. Using the boots to provide workers with a benefit is a taxable use, and DOR promptly denied the company’s exemption claim.

Instead of absorbing the costs, providing workers with protective equipment and earning a valuable tax exemption, the company must remit the full amount of use taxes on its purchases.

Sounds like an expensive kick where the sun don’t shine to us.