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Post subject: Non US Residents/Fender contests
Posted: Tue Oct 14, 2008 5:20 pm
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So I get the email to enter a contest for a Yngwie Strat.
Not really a big deal in a way for me. I'm not interested in the scalloped fingerboard, but I check it out & it's only open in the US.

SO I see a notice about Non US Residents--I mean I understand all the conditions and everything, but the next part--kind of a consolation prize, doesn't help--But first here's the excerpt from the rules.
Quote:
NOT A U.S. RESIDENT?

To the loyal FENDER® fans around the world: as you've no doubt noticed, Fender USA is currently offering this online promotion only to U.S. residents. To avoid any misunderstanding, please allow us to explain the reason for this limitation.

We should begin by stating the obvious. FENDER understands and appreciates that it has many loyal fans located outside of the United States. We also know that these fans want to participate in promotions just as much as the FENDER fans who live within the United States.

With that said, we would like to encourage guitarists outside of the United States to make use of the "International" link at Fender.com, and use it to look for contests and promotions that are being offered by our worldwide Fender locations and international distributors.

Unfortunately, however, even though we at Fender USA would like to make our contests available to everyone throughout the world, there are other factors that prevent us from being able to do so.

For example, there are a variety of local and national laws that companies are expected to comply with each and every time they conduct a contest like the one FENDER is currently running. FENDER makes sure that it complies with the applicable state and federal laws in the United States, but it would be virtually impossible to determine what the applicable laws are in each state, province and country throughout the world, and then ensure that our contests comply with such laws.

Additionally, some nations around the world simply do not want foreign countries operating contests in their homeland, and for that, there is nothing we can do. While we would like to open our contests to FENDER players across the globe, we hope you can understand that despite our best efforts, we just cannot do that.

Even though you are not eligible to participate in the current Fender USA contest, you may be eligible to participate in contests offered by our global websites, and we encourage you to check back often for updates. We appreciate your understanding with regards to our contest limitations and value your loyalty. We look forward to continuing to provide you with updated information about FENDER and its latest products.


So I go to the International link-http://www.fender.com/international/
Only I do not find a Canada link.

So no contests to enter. With Canadian laws I do believe only Quebec would have problems with this. Many other US companies open contests to US & Canada. I've heard that Fender is their own distributor in Canada. Is that correct?

On one hand, it's okay if I can't win anything--that's not why I check this site out or why I get the Fender emails. But it does make it seem like Canada is unimportant to Fender. I will be sending something along these lines to Fender directly. But I wanted to see what others thought.

And I am glad Canadians were included in the Forum giveaway for the anniversary of the forums--that was cool.

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Posted: Tue Oct 14, 2008 8:54 pm
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Hi Zontar, I think that a legal corporation like Fender cannot distribute prizes in a country that doesn't have a legal counterpart. Now it seems that language is not a problem, look at the "International" link. I would think that a lot of Canadians have always considered Americans like friendly neighbors and it is the case in fact. But somewhere in the "continental" way of life that we shared over the years, we forgot that countrys can be friends but they are still different countrys. :wink:

I don't know how this legal stuff works but I suppose that if someone would rise up and say hey, I want to do the paper work and start a Canadian section of the Fender worldwide community, everyone would be so happy. :D

Let's face it, the obligation to have a passport soon might bring a lot of unexpected changes, and I sincerely hope that it would include a regularisation of this sad situation. :D

I think that Brad made himself clear on a few occasions in the forums, that this situation is beeing looked into by concerned people. From what I understood, we (Canadians) are the one who must make the next move. :wink:

Cheers.


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Posted: Wed Oct 15, 2008 12:01 pm
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Canada!
I thought you guys were the 51st state! :D :wink:

Same language (for the most part)
Same animals
oh wait . . . monopoly money

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Posted: Wed Oct 15, 2008 3:11 pm
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One huge chunck of ice from east to west yeah. :D

Hello Mthorn00, don't you know that we play monopoly with credit cards now :shock:

Seriously, about money, there is not so much of a difference these days.

Cheers. :wink:


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Posted: Wed Oct 15, 2008 3:24 pm
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My company pays Americans and Canadians anywhere in the world and yes, we must have a semi-independent company with senior management to pay Canadians (there and here and anywhere).

But getting into financial transactions (even merchandise and prizes) with people from other countries can be pretty intense. It helps if the country in question has tax and work treaties with your home country, but I'm not sure how far that would go with prizes and contests.

I spent weeks figuring out how to pay and then getting all the paperwork when a client wanted to do an episode of a "famous reality show" on a small Pacific island. It involved their government, that of a major European country that once "possessed" this small nation and now acted as their interface to other countries, etc., etc., etc. And even then, there was more, including a call from our legal people to an international tax firm who in turned called an embassy here in LA.

Since taxes are almost certain to be involved, Fender would have to go through all this and maybe more for anyone winning a prize outside the US. They'd have to keep up with laws and would also have to be aware of countries that would be very hostile to a citizen doing anything with a US company. In short, "ain't gonna happen."


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Posted: Wed Oct 15, 2008 3:49 pm
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surely prize wins would constitute 'gift' status under tax laws. I'm pretty sure they do for uk tax and lets face it what our jhunta doesnt know about taxation isnt worth knowing. The only stipulation i can see that would need to be applied to foreign entries is a if you win, you collect policy. Uk winners could fly back via jersey to avoid taxation too.

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Posted: Wed Oct 15, 2008 4:32 pm
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nikininja wrote:
surely prize wins would constitute 'gift' status under tax laws. I'm pretty sure they do for uk tax and lets face it what our jhunta doesnt know about taxation isnt worth knowing. The only stipulation i can see that would need to be applied to foreign entries is a if you win, you collect policy. Uk winners could fly back via jersey to avoid taxation too.


In the US, prize winnings are usually taxable at the "Fair Market Value" and there'd also be a state tax in most states. It's considered unearned income and you'd generally add the FMV to your other income for the year.

That's one reason why people who win big prizes on game shows sometimes end up selling them. If you get a cash prize, they'll take out what's called "backup withholding" right up front. But merchandise prizes can't have anything taken out, so you end up with a tax bill.

I'm a little rusty on these rules, but I think that they're supposed to report any winnings (cash or the FMV of an item) worth $500 or more.

Another potential issue is that they'll usually use the maker's suggested retail in the state where the prize is won. We know that "street value" is usually less thatn suggested retail, so you end up paying tax on a value no one probably ever pays in reality. If it's enough, you could possibly prove your case to the IRS ... it might be worthwhile if you won an item that's listed at a very high amount but probably never sold for nearly that much.


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Posted: Wed Oct 15, 2008 4:45 pm
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Yep same in Canada, tax man is there with their hand out first.
With the one exception of the government run lotteries.

Also all contests not run by the government must include a "skill testing question"
So you can blow it by answering something stupid like what is 4+1*2 wrong.

(correct answer is 6)

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Posted: Wed Oct 15, 2008 6:38 pm
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Some entertaining reading there...
I'm aware of all that stuff, and it's okay.
I'm okay with a US company running contests only in the US.
That's common, although some do extend it to Canada.
I think what is getting me is that the rules point me to an international option, where I might find info on a contest by a distributor in my country--only to not find one for Canada.

Any way--Brad is looking into it, and opened it up for the Anniversary giveaway. That's cool.

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