I just found out and Shopify has confirmed the default tax report cannot be trusted and used for tax reporting BECAUSE IT DOES NOT ACCOUNT AND INCLUDE REFUNDS!!! I am actually shocked! This is unbelievable that they provide a report with the name "Taxes" and that report is inaccurate and incomplete. I did a bit of research and there is a similar thread where that issue was reported back in 2014!!!! That is 7 years ago and apparently nothing was done about it.
I am wondering how many users and businesses have used Shopify's tax report and filed wrong taxes (overpaid taxes because returns/refunds are not considered).
There is no warning or notification of any kind/type that the Shopify tax report cannot be trusted, should not be used, because it is potentially incorrect (in case you had a refund during that period).
I am really wondering why Shopify is "ignorant" and reluctant to fix that issue. It should be an easy on to fix ... I also wondering whether Shopify can be made liable when they provide knowingly wrong tax report information. They know about this issue - they have been made aware, but nothing was done (at least as far as I know).