Hello,
I do not want to use PayPal based shipping so this option should not be checked. This issue is regarding tax, not shipping. Also, there is no code in the shopping cart php file whatsoever to display tax, so it would not have helped anyway.
I also found a bug in shipping calculations – it seems if you don’t add a shipping cost to each item, the base shipping cost is never applied which it should. Let me know if you want more information.
I would like to know your thoughts on re-adding support for calculating tax like this. For me it works with a patched version, but it would be nice to not have to apply the patch again when updating the plugin next time. I am not sure if there would be any specific reason not allow this kind of tax calculation since it doesn’t stop you from using PayPal profile based shipping anyway.