Patent ID: 7809614

Claim:
A tax transaction system, for handling the calculation and deduction of a tax due to a tax collection agency, comprising; first data communication means to receive input relating to a taxing event including a first identifier identifying the tax jurisdiction in which the event has occurred and a second identifier identifying information on a buyer and a seller to the taxing event, a first database with tax rate and taxing event data for a plurality of tax jurisdictions linked to said first and second identifiers, first data processing means for calculating the tax due on the taxing event by reference to said first database, wherein the first data processing means is adapted to divide a record of the taxing event into a net component and a tax component after said first data processing means has calculated the tax due on the taxing event, second data communication means linked to a third party computer system associated with a relevant tax collection agency, a means for performing a tax remission transaction to said third party computer system based on said calculated tax due for payment associated with said taxing event, and means to create a dual transaction comprising an electronic monetary transaction for payment of the net component from a settlement agency server of said buyer to said seller, and an electronic monetary transaction for payment of the tax component from the settlement agency server of said buyer to said third party computer system, wherein the first data processing means is adapted to cause said electronic tax remission transaction for the payment of the tax component, identification of the seller, and identification of taxing event transaction details to said third party computer system in real time such that said transactions for said two components occur at substantially the same time and that the payments of the tax component and the net component are processed by said first data processing means so as to appear as a single transaction to said buyer, and wherein summary tax returns are not reported from the seller to the third party computer system in view of the identification of the seller and the identification of the taxing event transaction details by the settlement agency server of the buyer to the third party computer system.